0001501072
false
N-CSR
N-2
RIVERNORTH OPPORTUNITIES FUND, INC.
0001501072
2022-08-01
2023-07-31
0001501072
rmi:CommonSharesMember
2022-08-01
2023-07-31
0001501072
rmi:CompleteInvestmentProgramMember
2022-08-01
2023-07-31
0001501072
rmi:CommonSharesMember
2023-05-01
2023-07-31
0001501072
rmi:CommonSharesMember
2023-02-01
2023-04-30
0001501072
rmi:CommonSharesMember
2022-11-01
2023-01-31
0001501072
rmi:CommonSharesMember
2022-08-01
2022-10-31
0001501072
rmi:CommonSharesMember
2022-05-01
2022-07-31
0001501072
rmi:CommonSharesMember
2022-02-01
2022-04-30
0001501072
rmi:CommonSharesMember
2021-11-01
2022-01-31
0001501072
rmi:CommonSharesMember
2021-08-01
2021-10-31
0001501072
rmi:CommonSharesMember
2021-05-01
2021-07-31
0001501072
rmi:CommonSharesMember
2021-02-01
2021-04-30
0001501072
rmi:CommonSharesMember
2020-11-01
2021-01-31
0001501072
rmi:RisksAssociatedWithOfferingsOfAdditionalCommonSharesMember
2022-08-01
2023-07-31
0001501072
rmi:AdditionalRisksOfRightsMember
2022-08-01
2023-07-31
0001501072
rmi:LeverageRisksMember
2022-08-01
2023-07-31
0001501072
rmi:MarketDiscountMember
2022-08-01
2023-07-31
0001501072
rmi:AntiTakeoverProvisionsMember
2022-08-01
2023-07-31
0001501072
rmi:InvestmentRelatedRisksMember
2022-08-01
2023-07-31
0001501072
rmi:AssetAllocationRisksMember
2022-08-01
2023-07-31
0001501072
rmi:ConvertibleSecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:DefensiveMeasuresMember
2022-08-01
2023-07-31
0001501072
rmi:DerivativesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:DefaultedAndDistressedSecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:EquitySecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:ExchangeTradedNoteRisksMember
2022-08-01
2023-07-31
0001501072
rmi:FixedIncomeSecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:CreditRiskMember
2022-08-01
2023-07-31
0001501072
rmi:HighYieldSecuritiesRiskMember
2022-08-01
2023-07-31
0001501072
rmi:USGovernmentSecuritiesRiskMember
2022-08-01
2023-07-31
0001501072
rmi:InterestRateRiskMember
2022-08-01
2023-07-31
0001501072
rmi:SovereignObligationRiskMember
2022-08-01
2023-07-31
0001501072
rmi:ForeignInvestingRisksMember
2022-08-01
2023-07-31
0001501072
rmi:IlliquidSecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:InitialPublicOfferingsRisksMember
2022-08-01
2023-07-31
0001501072
rmi:InvestmentAndMarketRisksMember
2022-08-01
2023-07-31
0001501072
rmi:LegislationPolicyAndRegulatoryRisksMember
2022-08-01
2023-07-31
0001501072
rmi:LIBORRiskMember
2022-08-01
2023-07-31
0001501072
rmi:ManagementRiskMember
2022-08-01
2023-07-31
0001501072
rmi:MarketDisruptionAndGeopoliticalRisksMember
2022-08-01
2023-07-31
0001501072
rmi:MasterLimitedPartnershipsRisksMember
2022-08-01
2023-07-31
0001501072
rmi:MicroSmallAndMediumSizedCompanyRisksMember
2022-08-01
2023-07-31
0001501072
rmi:OptionsAndFuturesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:PrivateDebtRiskMember
2022-08-01
2023-07-31
0001501072
rmi:RealEstateInvestmentTrustRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SecuritiesLendingRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SecuritiesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SeniorLoanRisksMember
2022-08-01
2023-07-31
0001501072
rmi:ShortSaleRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SOFRRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SpecialPurposeAcquisitionCompaniesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:StructuredNotesRisksMember
2022-08-01
2023-07-31
0001501072
rmi:SwapRisksMember
2022-08-01
2023-07-31
0001501072
rmi:UnderlyingFundRisksMember
2022-08-01
2023-07-31
0001501072
rmi:WarrantRisksMember
2022-08-01
2023-07-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
xbrli:pure
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT
INVESTMENT COMPANIES
811-22472
(Investment
Company Act File Number)
RiverNorth
Opportunities Fund, Inc.
(Exact
Name of Registrant as Specified in Charter)
360
South Rosemary Avenue, Suite 1420
West
Palm Beach, FL 33401
(Address
of Principal Executive Offices)
Marcus
L. Collins, Esq.
RiverNorth
Capital Management, LLC
360
South Rosemary Avenue, Suite 1420
West
Palm Beach, FL 33401
(Name
and Address of Agent for Service)
(561)
484-7185
(Registrant’s
Telephone Number)
Date
of Fiscal Year End: July 31
Date
of Reporting Period: July 31, 2023
|
Item
1. | Reports
to Stockholders. |
![](https://www.sec.gov/Archives/edgar/data/1501072/000139834423019035/fp0085332-1_01.jpg)
RiverNorth
Opportunities Fund, Inc. |
Table
of Contents |
Shareholder Letter |
2 |
Performance Overview |
4 |
Statement of Investments |
8 |
Statement of Assets
and Liabilities |
22 |
Statement of Operations |
23 |
Statements of Changes
in Net Assets Attributable to Common Shareholders |
24 |
Financial Highlights |
26 |
Notes to Financial
Statements |
29 |
Report of Independent
Registered Public Accounting Firm |
44 |
Dividend Reinvestment
Plan |
45 |
Additional Information |
47 |
Portfolio Holdings |
47 |
Proxy Voting |
47 |
Unaudited Tax Information |
47 |
Expense Example |
48 |
Summary of Updated
Information Regarding the Fund |
50 |
Directors and Officers |
83 |
Data Privacy Policies
and Procedures |
91 |
RiverNorth
Opportunities Fund, Inc. |
Shareholder
Letter |
July 31, 2023 (Unaudited)
Dear
Fellow Shareholders,
At
this time last year, the Federal Reserve (“Fed”) was in the early stages of what has turned out to be a historic interest
rate hiking cycle in an effort to cool inflation. The dramatic increase in short term rates has caused the U.S. Treasury yield
curve to invert as longer-term treasury yields have been relatively sticky. Further, potential increases in rates – both
short term and long term – have been acting as somewhat of a “Sword of Damocles” hanging over the closed-end
fund (“CEF”) market.
Given
the environment as described above, the sentiment of CEF investors over the past year has remained somewhat negative after experiencing
significant negative performance from the fall of 2021 throughout most of calendar year 2022. This negative sentiment, combined
with yields on “risk free”, short term treasuries that now yield more than 5%, may have been an excuse for traditional
CEF investors to remain on the sidelines.
While
challenging to quantify, we are appearing to see CEF investor sentiment shifting towards a more positive sentiment. The Fed paused
rate hikes at their June 2023 meeting to provide the necessary time for the historic increases to have their lagged effect. It
does appear that inflation is cooling, while the overall U.S. economy has remained resilient. Notwithstanding recent cuts, CEF
distribution rates remain attractive. Further, net asset value (“NAV”) performance for the fiscal year ended July
31, 2023 has been positive across all CEF broad peer groups that we monitor with the exception of municipal CEFs (down 2.04%).
We believe that attractive discounts, high distribution yields, and recent positive performance, combined with a waning fear of
recession can combine to drive significant positive performance and discount narrowing from here. Of course, the primary risks
of rising rates and economic weakness continue to warrant conservatism in CEF investing.
We
believe interest rate uncertainty combined with volatility favors a bottom-up, active investment strategy comprised of a handful
of unique asset classes RiverNorth specializes in. We believe that our ability to react to CEF volatility, while also owning an
actively managed portfolio of debt and equity securities issued by business development companies (“BDCs”), plus pre-merger
special purpose acquisition companies (“SPACs”), provides a bespoke alternative to traditional fixed income strategies.
We
are pleased to provide you with the following 2023 Annual Report. Please visit www.rivernorth.com for additional information.
We thank you for your investment and trust in managing your assets.
Respectfully,
RiverNorth
Capital Management, LLC
Opinions
and estimates offered constitute our judgment and are subject to change.
RiverNorth
Opportunities Fund, Inc. |
Shareholder
Letter |
July 31, 2023 (Unaudited)
DEFINITIONS
Sword
of Damocles refers to an imminent threat and is attributed to the Roman philosopher Cicero (106-43 BC).
U.S.
Treasuries are seen as a good example of a risk-free investment because they are backed by the “full faith and credit”
of the U.S. government.
Business
Development Companies (BDC) are organizations that invest in small- and medium-sized companies as well as distressed companies.
A BDC helps the small- and medium-sized firms grow in the initial stages of their development.
Special
Purpose Acquisition Companies (SPAC) are publicly traded companies that raises a blind pool capital through an initial public
offering (IPO) for the purpose of acquiring an existing company.
Annual
Report | July 31, 2023 |
3 |
RiverNorth
Opportunities Fund, Inc. |
Performance
Overview |
July
31, 2023 (Unaudited)
WHAT
IS THE FUND’S INVESTMENT STRATEGY?
The
RiverNorth Opportunities Fund, Inc. (the “Fund”) pursues a tactical asset allocation strategy and opportunistically
invests under normal circumstances in closed-end funds ("CEFs"), exchange-traded funds ("ETFs"), business
development companies ("BDCs" and collectively, "Underlying Funds") and special purpose acquisition companies
("SPACs"). In selecting CEFs, RiverNorth Capital Management, LLC (the "Adviser") will opportunistically utilize
a combination of short-term and longer-term trading strategies to seek to derive value from the discount and premium spreads associated
with CEFs. The Fund will invest in other Underlying Funds and SPACs (that are not CEFs) to gain exposure to specific asset classes
when the Adviser believes CEF discount or premium spreads are not attractive or to manage overall CEF exposure in the Fund.
HOW
DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK DURING THE PERIOD?
PERFORMANCE as of July 31, 2023
|
CUMULATIVE |
AVERAGE
ANNUAL |
TOTAL
RETURNS(1) |
6
Months |
1
Year |
3
Year |
5
Year |
Since
Inception(2) |
RiverNorth
Opportunities Fund, Inc. - NAV(3) |
2.69% |
4.41% |
7.94% |
5.10% |
7.27% |
RiverNorth
Opportunities Fund, Inc. - Market Price(4) |
0.23% |
-9.22% |
5.68% |
3.58% |
5.88% |
S&P
500® Total Return Index |
13.52% |
13.02% |
13.72% |
12.20% |
13.14% |
| (1) | Total
returns assume reinvestment of all distributions. |
| (2) | The
Fund commenced operations on December 24, 2015. |
| (3) | Performance
returns are net of management fees and other Fund expenses. |
| (4) | Market
price is the value at which the Fund trades on an exchange. This market price can be
more or less than its NAV. |
Performance
data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher
than the performance quoted. The principal value and investment return of an investment will fluctuate so that your shares may
be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling
(844) 569-4750 or by visiting www.rivernorth.com. Total return measures net investment income and capital gain or loss from portfolio
investments. All performance shown assumes reinvestment of dividends and capital gains distributions but does not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares.
WHAT
CONTRIBUTING FACTORS WERE RESPONSIBLE FOR THE FUND’S RELATIVE PERFORMANCE DURING THE FISCAL YEAR ENDED JULY 31, 2023?
During
the fiscal year ended July 31, 2023, exposure to CEFs, primarily NAV exposure, and secondarily discount narrowing, was the largest
positive contributor to performance. Exposure to investment company debt (tradable debt issued by CEFs and BDCs to lever their
portfolios) and SPACs also contributed positively over the period. The Fund’s short hedge contributed negatively to performance
for the fiscal year ended July 31, 2023.
RiverNorth
Opportunities Fund, Inc. |
Performance
Overview |
July 31, 2023 (Unaudited)
HOW
WAS THE RIVERNORTH OPPORTUNITIES FUND POSITIONED AT THE END OF THE FISCAL YEAR?
The
Fund had 54% of its portfolio invested in CEFs at the end of the fiscal year. Additionally, the Fund had 13% invested in investment
company debt, 10% in SPACs and 10% in U.S. Treasuries.
Total
leverage of the portfolio at period end was 27%.
DISTRIBUTION
TO COMMON STOCKHOLDERS
The
Fund intends to make regular monthly distributions to stockholders at a constant and fixed (but not guaranteed) rate that is reset
annually to a rate equal to a percentage of the average of the Fund’s NAV per share as reported for the final five trading
days of the preceding calendar year. The Board of Directors approve the distribution and may adjust it from time to time. The
monthly distribution amount paid from August 1, 2022 to December 31, 2022 was $0.1700 and the monthly distribution amount paid
from January 1, 2023 to July 31, 2023 was $0.1278 per share. At times, to maintain a stable level of distributions, the Fund may
pay out less than all of its net investment income or pay out accumulated undistributed income, or return of capital, in addition
to current net investment income. In addition to the contributing factors referenced above, the Adviser believes that the Fund's
level distribution policy did not have a material impact on the Fund's ability to execute on its investment strategy during the
fiscal year ended July 31, 2023.
Total
annual expense ratio as a percentage of net assets attributable to common shares as of July 31, 2023, is 1.91% (excluding dividend
expense and line of credit expense). Including dividend expense and line of credit expense, the expense ratio is 2.09%.
The
Fund is a CEF and does not continuously issue shares for sale as open-end mutual funds do. The Fund now trades only in the secondary
market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker and additional charges
or commissions will apply. The share price of a CEF is based on the market’s value.
Distributions
may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term
capital gains and return of capital. The actual amounts and sources of the amounts for tax reporting purposes will depend upon
a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate
of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s
distributions) contained in shareholders’ 1099-DIV forms after the end of the year.
S&P
500® Total Return Index – A market value weighted index of 500 stocks chosen for market size, liquidity and
industry grouping, among other factors. This index is designed to be a leading indicator of U.S. equities and is meant to reflect
the risk/return characteristics of the large cap universe. This index reflects the effects of dividend reinvestment.
Indices
are unmanaged; their returns do not reflect any fees, expenses, or sales charges.
An investor cannot invest directly in an index.
RiverNorth
Capital Management, LLC is the investment adviser to the Fund.
Secondary
market support provided to the Fund by ALPS Advisors, Inc.'s affiliate, ALPS Portfolio Solutions Distributor, Inc., a FINRA member.
Annual
Report | July 31, 2023 |
5 |
RiverNorth
Opportunities Fund, Inc. |
Performance
Overview |
July
31, 2023 (Unaudited)
GROWTH
OF A HYPOTHETICAL $10,000 INVESTMENT
The
graph below illustrates the growth of a hypothetical $10,000 investment assuming the purchase of common shares at NAV or the closing
market price (NYSE: RIV) of $19.40 on December 24, 2015, and tracking its progress through July 31, 2023.
![](https://www.sec.gov/Archives/edgar/data/1501072/000139834423019035/fp0085332-1_02.jpg)
Past
performance does not guarantee future results. Performance will fluctuate with changes in market conditions. Current performance
may be lower or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders
would pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.
ASSET
ALLOCATION as of July 31, 2023^
^ | Holdings
are subject to change. |
Percentages
are based on total investments of the Fund.
RiverNorth
Opportunities Fund, Inc. |
Performance
Overview |
July
31, 2023 (Unaudited)
TOP TEN HOLDINGS* as of July 31, 2023
|
% of Net Assets** |
BlackRock
ESG Capital Allocation Term Trust |
9.96% |
BlackRock Capital Allocation Term Trust |
9.20% |
Pershing Square Holdings Ltd. |
8.15% |
PIMCO Energy & Tactical Credit Opportunities
Fund |
4.03% |
Saba Capital Income & Opportunities Fund |
3.85% |
Western Asset Inflation-Linked Opportunities
& Income Fund |
3.45% |
Nuveen Preferred & Income Securities Fund |
3.31% |
Virtus Total Return Fund, Inc. |
3.18% |
PIMCO Access Income Fund |
3.02% |
PIMCO Dynamic Income Opportunities Fund |
2.97% |
|
51.12% |
| * | Holdings
are subject to change and exclude cash equivalents. Only long positions are listed. |
| ** | Percentages
are based on net assets attributable to common shareholders, including securities sold
short. |
Annual Report | July 31, 2023 |
7 |
RiverNorth Opportunities Fund, Inc. |
Statement of Investments |
July 31, 2023
Shares | | |
Description | |
Value (Note
2) | |
CLOSED-END
FUNDS - COMMON SHARES (74.35%) | |
| | |
| 24,707 | | |
AllianzGI
Convertible & Income 2024 Target Term Fund | |
$ | 219,397 | |
| 452,491 | | |
Barings Corporate Investors | |
| 6,990,986 | |
| 308,625 | | |
Barings Participation
Investors | |
| 4,110,885 | |
| 159,926 | | |
BlackRock Build America
Bond Trust | |
| 2,624,386 | |
| 333,927 | | |
BlackRock California
Municipal Income Trust | |
| 3,870,214 | |
| 1,580,378 | | |
BlackRock Capital Allocation
Term Trust(a) | |
| 24,290,410 | |
| 1,643,238 | | |
BlackRock ESG Capital
Allocation Term Trust(a) | |
| 26,308,240 | |
| 173,461 | | |
BlackRock Health Sciences
Term Trust | |
| 2,834,353 | |
| 151,932 | | |
Calamos Long/Short
Equity & Dynamic Income Trust(a) | |
| 2,391,410 | |
| 679,091 | | |
Clough Global Opportunities
Fund | |
| 3,483,737 | |
| 323,801 | | |
First Trust High Yield
Opportunities 2027 Term Fund | |
| 4,533,214 | |
| 243,270 | | |
Invesco Dynamic Credit
Opportunity Fund | |
| 2,685,699 | |
| 333,768 | | |
Kayne Anderson Midstream/Energy
Fund, Inc. | |
| 2,516,611 | |
| 149,298 | | |
MainStay CBRE Global
Infrastructure Megatrends Term Fund | |
| 2,112,567 | |
| 126,611 | | |
Morgan Stanley Emerging
Markets Domestic Debt Fund, Inc. | |
| 620,394 | |
| 241,818 | | |
Nuveen AMT-Free Quality
Municipal Income Fund | |
| 2,643,071 | |
| 46,350 | | |
Nuveen Build America
Bond Fund | |
| 724,914 | |
| 266,735 | | |
Nuveen Core Plus Impact
Fund | |
| 2,707,360 | |
| 1,333,633 | | |
Nuveen Preferred &
Income Securities Fund | |
| 8,748,632 | |
| 101,868 | | |
Nuveen Preferred &
Income Term Fund | |
| 1,795,933 | |
| 558,979 | | |
Pershing Square Holdings
Ltd. | |
| 21,520,691 | |
| 535,823 | | |
PIMCO Access Income
Fund | |
| 7,983,763 | |
| 207,294 | | |
PIMCO Dynamic Income
Fund | |
| 3,953,097 | |
| 599,741 | | |
PIMCO Dynamic Income
Opportunities Fund | |
| 7,856,607 | |
| 635,154 | | |
PIMCO Energy &
Tactical Credit Opportunities Fund(a) | |
| 10,638,829 | |
| 339,415 | | |
PIMCO Global StocksPLUS
& Income Fund | |
| 2,525,248 | |
| 613,676 | | |
Pioneer Municipal High
Income Fund Trust | |
| 5,326,708 | |
| 1,275,236 | | |
Saba Capital Income
& Opportunities Fund(a) | |
| 10,176,379 | |
| 226,250 | | |
Special Opportunities
Fund, Inc. | |
| 2,617,712 | |
| 2,906 | | |
Virtus AllianzGI Diversified
Income & Convertible Fund | |
| 63,136 | |
| 1,349,732 | | |
Virtus Total Return
Fund, Inc. | |
| 8,408,830 | |
| 1,018,110 | | |
Western
Asset Inflation-Linked Opportunities & Income Fund | |
| 9,101,903 | |
| |
| | |
TOTAL
CLOSED-END FUNDS - COMMON SHARES | |
| | |
(Cost
$194,262,405) | |
| 196,385,316 | |
Shares | | |
Description | |
Rate | | |
Maturity Date | |
Value (Note
2) | |
BUSINESS
DEVELOPMENT COMPANIES - PREFERRED SHARES (3.41%) | |
| |
| | |
| 222,107 | | |
Crescent
Capital BDC, Inc. | |
| 5.000 | % | |
05/25/26 | |
| 5,172,872 | |
| 44,336 | | |
Oxford Square Capital
Corp. | |
| 6.500 | % | |
03/30/24 | |
| 1,107,070 | |
| 89,285 | | |
Virtus Convertible
& Income Fund II(b) | |
| 5.500 | % | |
| |
| 1,897,306 | |
See Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Rate | | |
Maturity Date | |
Value (Note
2) | |
| 33,699 | | |
XAI Octagon Floating Rate Alternative Income Term Trust | |
| 6.500 | % | |
03/31/26 | |
$ | 837,420 | |
|
| |
| | |
TOTAL BUSINESS DEVELOPMENT COMPANIES - PREFERRED SHARES |
| |
| | |
(Cost $9,176,070) | |
| | | |
| |
| 9,014,668 | |
Principal Amount | | |
Description | |
Rate | | |
Maturity Date | |
Value (Note
2) | |
BUSINESS DEVELOPMENT COMPANY NOTES (2.50%) | |
| | | |
| |
| | |
$ | 1,500,000 | | |
Golub Capital BDC, Inc. | |
| 2.050 | % | |
02/15/27 | |
| 1,262,415 | |
| 2,744,753 | | |
Golub Capital BDC, Inc. | |
| 3.375 | % | |
04/15/24 | |
| 2,676,991 | |
| 1,450 | | |
New Mountain Finance Corp. | |
| 5.750 | % | |
08/15/23 | |
| 1,451 | |
| 2,923,130 | | |
PennantPark Floating Rate Capital, Ltd. | |
| 4.250 | % | |
04/01/26 | |
| 2,664,749 | |
| | | |
| |
| | | |
| |
| 6,605,606 | |
| |
| | | |
| |
| | |
TOTAL BUSINESS DEVELOPMENT COMPANY NOTES | |
| | | |
| |
| | |
(Cost $6,856,878) | |
| | | |
| |
| 6,605,606 | |
| | | |
| |
| | | |
| |
| | |
CORPORATE BONDS (12.02%) | |
| | | |
| |
| | |
| 6,459,394 | | |
Blackstone Private Credit Fund(c) | |
| 2.625 | % | |
12/15/26 | |
| 5,546,874 | |
| 2,856,157 | | |
Blackstone Private Credit Fund(c) | |
| 3.250 | % | |
03/15/27 | |
| 2,488,932 | |
| 3,082,262 | | |
Blackstone Secured Lending Fund | |
| 2.850 | % | |
09/30/28 | |
| 2,554,754 | |
| 500,000 | | |
Blue Owl Capital Corp. | |
| 2.875 | % | |
06/11/28 | |
| 413,741 | |
| 632,813 | | |
Blue Owl Capital Corp. | |
| 3.400 | % | |
07/15/26 | |
| 571,529 | |
| 3,000,000 | | |
Blue Owl Capital Corp. | |
| 3.750 | % | |
07/22/25 | |
| 2,802,409 | |
| 557,143 | | |
Blue Owl Capital Corp. III | |
| 3.125 | % | |
04/13/27 | |
| 472,910 | |
| 2,492,428 | | |
Blue Owl Credit Income Corp.(c) | |
| 3.125 | % | |
09/23/26 | |
| 2,177,325 | |
| 2,505,752 | | |
Blue Owl Credit Income Corp.(c) | |
| 5.500 | % | |
03/21/25 | |
| 2,427,068 | |
| 2,718,300 | | |
Blue Owl Credit Income Corp.(c) | |
| 7.750 | % | |
09/16/27 | |
| 2,714,609 | |
| 2,500,000 | | |
Blue Owl Technology Finance Corp.(c) | |
| 6.750 | % | |
06/30/25 | |
| 2,399,083 | |
| 3,072,928 | | |
Franklin BSP Lending Corp. | |
| 3.250 | % | |
03/30/26 | |
| 2,750,674 | |
| 1,300,000 | | |
Franklin BSP Lending Corp.(c) | |
| 4.850 | % | |
12/15/24 | |
| 1,240,073 | |
| 1,000,000 | | |
FS KKR Capital Corp. | |
| 2.625 | % | |
01/15/27 | |
| 862,194 | |
| 1,500,000 | | |
MidCap Financial Investment Corp. | |
| 5.250 | % | |
03/03/25 | |
| 1,447,692 | |
| 1,000,000 | | |
PennantPark Investment Corp. | |
| 4.000 | % | |
11/01/26 | |
| 876,954 | |
| | | |
| |
| | | |
| |
| 31,746,821 | |
TOTAL CORPORATE BONDS | |
| | | |
| |
| | |
(Cost $31,778,961) | |
| | | |
| |
| 31,746,821 | |
Shares | | |
Description | |
Value (Note
2) | |
SPECIAL PURPOSE ACQUISITION COMPANIES - COMMON SHARES/UNITS (16.47%)(d) | |
| | |
| 48,020 | | |
A SPAC I Acquisition Corp. | |
| 509,492 | |
| 50,470 | | |
A SPAC II Acquisition Corp. | |
| 532,963 | |
| 28,748 | | |
Achari Ventures Holdings Corp. I | |
| 306,741 | |
| 28,640 | | |
Adit EdTech Acquisition Corp. | |
| 302,438 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
9 |
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 27,690 | | |
Alpha Star Acquisition Corp. | |
$ | 297,391 | |
| 7,852 | | |
Apeiron Capital Investment Corp. | |
| 82,525 | |
| 149,999 | | |
Ares Acquisition Corp. | |
| 1,597,489 | |
| 260,926 | | |
Ares Acquisition Corp. II | |
| 2,682,319 | |
| 39,063 | | |
Arisz Acquisition Corp. | |
| 413,962 | |
| 72,474 | | |
Aurora Technology Acquisition Corp. | |
| 776,921 | |
| 800,365 | | |
Barings BDC, Inc. | |
| 6,683,048 | |
| 54,328 | | |
Bellevue Life Sciences Acquisition Corp. | |
| 560,122 | |
| 114,802 | | |
Blue Ocean Acquisition Corp. | |
| 1,220,345 | |
| 65,000 | | |
Bowen Acquisition Corp. | |
| 658,450 | |
| 42,480 | | |
CC Neuberger Principal Holdings III | |
| 456,660 | |
| 128,000 | | |
Churchill Capital Corp. V | |
| 1,310,720 | |
| 60,000 | | |
Churchill Capital Corp. VII | |
| 622,800 | |
| 45,091 | | |
Concord Acquisition Corp. II | |
| 464,888 | |
| 52,566 | | |
Distoken Acquisition Corp. | |
| 546,686 | |
| 34,404 | | |
ESH Acquisition Corp. | |
| 346,792 | |
| 34,274 | | |
Everest Consolidator Acquisition Corp. | |
| 366,732 | |
| 67,520 | | |
FG Merger Corp. | |
| 717,062 | |
| 30,880 | | |
FutureTech II Acquisition Corp. | |
| 331,188 | |
| 37,000 | | |
Gardiner Healthcare Acquisitions Corp. | |
| 393,680 | |
| 65,531 | | |
Globalink Investment, Inc. | |
| 695,939 | |
| 48,320 | | |
Graf Acquisition Corp. IV | |
| 501,078 | |
| 65,632 | | |
Growth For Good Acquisition Corp. | |
| 690,449 | |
| 30,342 | | |
Haymaker Acquisition Corp. 4 | |
| 307,668 | |
| 72,500 | | |
Hennessy Capital Investment Corp. VI | |
| 746,025 | |
| 64,668 | | |
Horizon Space Acquisition I Corp. | |
| 675,781 | |
| 63,942 | | |
Inflection Point Acquisition Corp. II | |
| 652,208 | |
| 14,300 | | |
Innovative International Acquisition Corp. | |
| 159,161 | |
| 78,504 | | |
Integrated Rail and Resources Acquisition Corp. | |
| 847,058 | |
| 87,536 | | |
Integrated Wellness Acquisition Corp. | |
| 949,766 | |
| 64,922 | | |
Kairous Acquisition Corp. ltd | |
| 710,896 | |
| 41,936 | | |
Kensington Capital Acquisition Corp. V | |
| 446,618 | |
| 39,630 | | |
Lakeshore Acquisition II Corp. | |
| 422,852 | |
| 9,574 | | |
Learn CW Investment Corp. | |
| 100,623 | |
| 65,640 | | |
LIV Capital Acquisition Corp. II | |
| 699,722 | |
| 19,191 | | |
M3-Brigade Acquisition III Corp. | |
| 201,314 | |
| 67,493 | | |
Mars Acquisition Corp. | |
| 699,903 | |
| 64,028 | | |
Mercato Partners Acquisition Corp. | |
| 674,855 | |
| 14,063 | | |
Moolec Science SA | |
| 973 | |
| 66,944 | | |
Nabors Energy Transition Corp. II | |
| 678,143 | |
| 42,162 | | |
Newbury Street Acquisition Corp. | |
| 440,593 | |
| 48,836 | | |
OceanTech Acquisitions I Corp. | |
| 537,684 | |
| 58,799 | | |
OPY Acquisition Corp. I | |
| 603,278 | |
| 51,134 | | |
PHP Ventures Acquisition Corp. | |
| 555,842 | |
| 32,271 | | |
Pono Capital Three, Inc. | |
| 337,555 | |
| 33,890 | | |
Priveterra Acquisition Corp. II | |
| 362,962 | |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 30,397 | | |
Quantum FinTech Acquisition Corp. | |
$ | 321,904 | |
| 68,194 | | |
Redwoods Acquisition Corp. | |
| 719,788 | |
| 3,596 | | |
REE Automotive, Ltd. | |
| 1,223 | |
| 64,612 | | |
RF Acquisition Corp. | |
| 680,364 | |
| 65,163 | | |
Screaming Eagle Acquisition Corp. | |
| 675,740 | |
| 83,236 | | |
Sizzle Acquisition Corp. | |
| 898,949 | |
| 14,408 | | |
SportsMap Tech Acquisition Corp. | |
| 153,445 | |
| 39,232 | | |
Tristar Acquisition I Corp. | |
| 410,367 | |
| 92,054 | | |
UTA Acquisition Corp. | |
| 979,455 | |
| 31,196 | | |
Vahanna Tech Edge Acquisition I Corp. | |
| 333,173 | |
| 51,495 | | |
Waverley Capital Acquisition Corp. 1 | |
| 535,033 | |
| 66,708 | | |
Welsbach Technology Metals Acquisition Corp. | |
| 707,772 | |
| 52,742 | | |
WinVest Acquisition Corp. | |
| 570,141 | |
| 60,341 | | |
Yotta Acquisition Corp. | |
| 633,581 | |
| |
| | |
TOTAL SPECIAL PURPOSE ACQUISITION COMPANIES - COMMON SHARES/UNITS | |
| | |
(Cost $41,986,589) | |
| 43,501,295 | |
| | | |
| |
| | |
RIGHTS (0.08%) | |
| | |
| 48,020 | | |
A SPAC I Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 6,291 | |
| 50,470 | | |
A SPAC II Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 3,725 | |
| 33,634 | | |
Accretion Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 2,475 | |
| 24,649 | | |
Allegro Merger Corp., Strike Price $11.50, Expires 12/31/2049 | |
| – | |
| 27,690 | | |
Alpha Star Acquisition Corp., Strike Price $0.01, Expires 12/13/2026 | |
| 2,769 | |
| 39,063 | | |
Arisz Acquisition Corp., Strike Price $11.50, Expires 11/16/2026 | |
| 3,125 | |
| 72,474 | | |
Aurora Technology Acquisition Corp., Strike Price $11.50, Expires 02/07/2028 | |
| 10,001 | |
| 39,963 | | |
AXIOS SUSTAINABLE GROWTH ACQUISITION Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 24 | |
| 51,497 | | |
Bannix Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 10,299 | |
| 54,328 | | |
Bellevue Life Sciences Acquisi, Strike Price $0.01, Expires 12/31/2045 | |
| 13,039 | |
| 21,512 | | |
Breeze Holdings Acquisition Corp., Strike Price $0.01, Expires 05/25/2027 | |
| 3,657 | |
| 11,614 | | |
Brilliant Acquisition Corp., Strike Price $11.50, Expires 12/31/2025 | |
| 1,880 | |
| 62,670 | | |
ClimateRock, Strike Price $0.01, Expires 06/01/2027 | |
| 5,697 | |
| 35,695 | | |
Data Knights Acquisition Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 750 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
11 |
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 28,601 | | |
Deep
Medicine Acquisition Corp., Strike Price $11.50, Expires 10/26/2023 | |
$ | 5,863 | |
| 52,566 | | |
Distoken
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 10,513 | |
| 34,404 | | |
ESH
Acquisition Corp., Strike Price $10.00, Expires 12/31/2049 | |
| 5,161 | |
| 65,633 | | |
Financial
Strategies Acquisition Corp., Strike Price $11.50, Expires 03/31/2028 | |
| 8,106 | |
| 65,531 | | |
Globalink
Investment, Inc., Strike Price $11.50, Expires 08/19/2023 | |
| 8,231 | |
| 65,632 | | |
Growth
For Good Acquisition Corp., Strike Price $11.50, Expires 06/14/2023 | |
| 10,560 | |
| 64,668 | | |
Horizon
Space Acquisition I Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 9,034 | |
| 64,922 | | |
Kairous
Acquisition Corp. ltd, Strike Price $11.50, Expires 11/24/2023 | |
| 6,297 | |
| 39,630 | | |
Lakeshore
Acquisition II Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 7,332 | |
| 67,493 | | |
Mars
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 11,811 | |
| 67,514 | | |
Mountain
Crest Acquisition Corp. V, Strike Price $0.01, Expires 12/31/2049 | |
| 10,667 | |
| 36,206 | | |
Nocturne
Acquisition Corp., Strike Price $0.01, Expires 12/29/2025 | |
| 6,220 | |
| 69,600 | | |
NorthView
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 9,048 | |
| 51,134 | | |
PHP
Ventures Acquisition Corp., Strike Price $0.01, Expires 10/08/2022 | |
| 6,699 | |
| 68,194 | | |
Redwoods
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 7,760 | |
| 64,612 | | |
RF
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 7,114 | |
| 32,618 | | |
Viveon
Health Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 1,794 | |
| 66,708 | | |
Welsbach
Technology Metals Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 4,670 | |
| 52,742 | | |
WinVest
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 2,305 | |
| 60,341 | | |
Yotta
Acquisition Corp., Strike Price $0.01, Expires 12/31/2049 | |
| 5,304 | |
| | | |
| |
| | |
TOTAL
RIGHTS | |
| | |
(Cost
$303,074) | |
| 208,221 | |
| | | |
| |
| | |
WARRANTS
(0.18%) | |
| | |
| 3,022 | | |
26
Capital Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 272 | |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 1,245 | | |
7GC & Co. Holdings, Inc., Strike Price $11.50, Expires 12/31/2026 | |
$ | 97 | |
| 36,015 | | |
A SPAC I Acquisition Corp., Strike Price $11.50, Expires 05/21/2027 | |
| 1,225 | |
| 25,235 | | |
A SPAC II Acquisition Corp., Strike Price $11.50, Expires 05/03/2027 | |
| 540 | |
| 13,995 | | |
Abacus Life, Inc., Strike Price $11.50, Expires 07/01/2027 | |
| 3,289 | |
| 16,817 | | |
Accretion Acquisition Corp., Strike Price $11.50, Expires 03/01/2028 | |
| 504 | |
| 23,244 | | |
Ace Global Business Acquisition, Ltd., Strike Price $11.50, Expires 12/31/2027 | |
| 946 | |
| 28,748 | | |
Achari Ventures Holdings Corp. I, Strike Price $11.50, Expires 10/15/2026 | |
| 676 | |
| 14,320 | | |
Adit EdTech Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 896 | |
| 2,250 | | |
AEON Biopharma, Inc., Strike Price $11.50, Expires 12/31/2027 | |
| 428 | |
| 318 | | |
African Gold Acquisition Corp., Strike Price $11.50, Expires 03/13/2028 | |
| – | |
| 30,384 | | |
AGBA Group Holding, Ltd., Strike Price $11.50, Expires 05/10/2024 | |
| 1,513 | |
| 24,649 | | |
Allegro Merger Corp., Strike Price $11.50, Expires 12/31/2049 | |
| – | |
| 27,690 | | |
Alpha Star Acquisition Corp., Strike Price $11.50, Expires 12/13/2026 | |
| 401 | |
| 43,371 | | |
ALSP Orchid Acquisition Corp. I, Strike Price $11.50, Expires 11/30/2028 | |
| 1,305 | |
| 11,896 | | |
AltEnergy Acquisition Corp., Strike Price $11.50, Expires 11/02/2028 | |
| 634 | |
| 13,545 | | |
American Acquisition Opportunity, Inc., Strike
Price $11.50, Expires 05/28/2026 | |
| 593 | |
| 67,418 | | |
Amprius Technologies, Inc., Strike Price $11.50, Expires 09/14/2027 | |
| 28,996 | |
| 3,926 | | |
Apeiron Capital Investment Corp., Strike Price $11.50, Expires 04/02/2026 | |
| 43 | |
| 8,612 | | |
Apexigen, Inc., Strike Price $11.50, Expires 08/31/2027 | |
| 240 | |
| 20,000 | | |
Ares Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 17,602 | |
| 39,063 | | |
Arisz Acquisition Corp., Strike Price $11.50, Expires 11/16/2026 | |
| 1,051 | |
| 32,655 | | |
Ault Disruptive Technologies Corp., Strike Price $11.50, Expires 06/20/2028 | |
| 3,004 | |
| 72,474 | | |
Aurora Technology Acquisition Corp., Strike Price $11.50, Expires 02/07/2028 | |
| 1,268 | |
| 39,963 | | |
AXIOS SUSTAINABLE GROWTH ACQUISITION Corp., Strike Price $11.50, Expires 02/16/2027 | |
| 80 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
|
13 |
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 51,497 | | |
Bannix Acquisition Corp., Strike Price $11.50, Expires 07/31/2026 | |
$ | 1,257 | |
| 54,641 | | |
Battery Future Acquisition Corp., Strike Price $11.50, Expires 05/26/2028 | |
| 5,461 | |
| 54,328 | | |
Bellevue Life Sciences Acquisi, Strike Price $11.50, Expires 02/10/2028 | |
| 2,722 | |
| 81,786 | | |
Beneficient, Strike Price $11.50, Expires 06/07/2028 | |
| 2,658 | |
| 15,314 | | |
BioPlus Acquisition Corp., Strike Price $11.50, Expires 07/19/2028 | |
| 2,144 | |
| 41,904 | | |
Bitcoin Depot, Inc., Strike Price $11.50, Expires 07/03/2028 | |
| 10,895 | |
| 29,424 | | |
Black Mountain Acquisition Corp., Strike Price $11.50, Expires 10/15/2027 | |
| 1,473 | |
| 7,840 | | |
Blockchain Coinvestors Acquisition Corp. I, Strike Price $11.50, Expires 11/01/2028 | |
| 296 | |
| 57,401 | | |
Blue Ocean Acquisition Corp., Strike Price $11.50, Expires 10/21/2028 | |
| 2,927 | |
| 21,512 | | |
Breeze Holdings Acquisition Corp., Strike Price $11.50, Expires 05/25/2027 | |
| 5,701 | |
| 49,850 | | |
Bridger Aerospace Group Holdings, Inc., Strike Price $11.50, Expires 01/25/2028 | |
| 13,828 | |
| 6,735 | | |
Brilliant Acquisition Corp., Strike Price $11.50, Expires 12/31/2025 | |
| 404 | |
| 23,792 | | |
Cactus Acquisition Corp. 1, Ltd., Strike Price $11.50, Expires 10/29/2026 | |
| 961 | |
| 15,319 | | |
Cardio Diagnostics Holdings, Inc., Strike Price $11.50, Expires 12/01/2026 | |
| 2,413 | |
| 10,367 | | |
CC Neuberger Principal Holdings III, Strike Price $11.50, Expires 12/31/2027 | |
| 1,867 | |
| 830 | | |
CF Acquisition Corp. IV, Strike Price $11.50, Expires 12/14/2025 | |
| 70 | |
| 6,768 | | |
CF Acquisition Corp. VIII, Strike Price $11.50, Expires 12/31/2027 | |
| 309 | |
| 24,500 | | |
Churchill Capital Corp. V, Strike Price $11.50, Expires 10/29/2027 | |
| 4,900 | |
| 9,909 | | |
Churchill Capital Corp. VI, Strike Price $11.50, Expires 12/31/2027 | |
| 1,883 | |
| 32,084 | | |
Churchill Capital Corp. VII, Strike Price $11.50, Expires 02/29/2028 | |
| 4,200 | |
| 31,335 | | |
ClimateRock, Strike Price $11.50, Expires 06/01/2027 | |
| 766 | |
| 2,087 | | |
Corner Growth Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 271 | |
| 11,670 | | |
Crescera Capital Acquisition Corp., Strike Price
$11.50, Expires 11/19/2028 | |
| 39 | |
| 5,688 | | |
DHC Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 348 | |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 19,208 | | |
Digital Health Acquisition Corp., Strike Price $11.50, Expires 10/14/2023 | |
$ | 624 | |
| 17,658 | | |
Direct Selling Acquisition Corp., Strike Price $11.50, Expires 09/30/2028 | |
| 177 | |
| 52,566 | | |
Distoken Acquisition Corp., Strike Price $11.50, Expires 03/30/2028 | |
| 2,944 | |
| 9,479 | | |
Dune Acquisition Corp., Strike Price $11.50, Expires 10/29/2027 | |
| 509 | |
| 2,171 | | |
ECARX Holdings, Inc., Strike Price $11.50, Expires 12/21/2027 | |
| 163 | |
| 14,153 | | |
Edify Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 277 | |
| 6,303 | | |
EdtechX Holdings Acquisition Corp. II, Strike Price $11.50, Expires 06/15/2027 | |
| 422 | |
| 4,802 | | |
Enterprise 4.0 Technology Acquisition Corp., Strike Price $11.50, Expires 09/24/2023 | |
| 9 | |
| 54,501 | | |
Euda Health Holdings, Ltd., Strike Price $11.50, Expires 09/24/2026 | |
| 3,270 | |
| 54,641 | | |
EVe Mobility Acquisition Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 3,339 | |
| 17,137 | | |
Everest Consolidator Acquisition Corp., Strike Price $11.50, Expires 07/19/2028 | |
| 4,183 | |
| 4,804 | | |
ExcelFin Acquisition Corp., Strike Price $11.50, Expires 10/21/2026 | |
| 234 | |
| 6,779 | | |
FAST Acquisition Corp. II, Strike Price $11.50, Expires 03/16/2026 | |
| 3,932 | |
| 50,640 | | |
FG Merger Corp., Strike Price $11.50, Expires 06/17/2027 | |
| 5,064 | |
| 65,633 | | |
Financial Strategies Acquisition Corp., Strike Price $11.50, Expires 03/31/2028 | |
| 984 | |
| 24,010 | | |
Finnovate Acquisition Corp., Strike Price $11.50, Expires 09/30/2026 | |
| 735 | |
| 2,129 | | |
Flame Acquisition Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 729 | |
| 37,823 | | |
Forafric Global PLC, Strike Price $11.50, Expires 06/09/2027 | |
| 35,554 | |
| 20,705 | | |
FOXO Technologies, Inc., Strike Price $11.50, Expires 08/01/2027 | |
| 89 | |
| 22,574 | | |
Frontier Investment Corp., Strike Price $11.50, Expires 12/31/2026 | |
| 2,704 | |
| 7,176 | | |
Fusion Acquisition Corp. II, Strike Price $11.50, Expires 12/31/2027 | |
| 36 | |
| 30,880 | | |
FutureTech II Acquisition Corp., Strike Price $11.50, Expires 02/16/2027 | |
| 1,847 | |
| 67,312 | | |
Gardiner Healthcare Acquisitions Corp., Strike Price $11.50, Expires 07/30/2028 | |
| 4,039 | |
| 43,768 | | |
Genesis Growth Tech Acquisition Corp., Strike Price $11.50, Expires 05/19/2028 | |
| 109 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
15 |
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 53,773 | | |
Genesis Unicorn Capital Corp., Strike Price $11.50, Expires 06/30/2026 | |
$ | 3,226 | |
| 42,380 | | |
GigCapital5, Inc., Strike Price $11.50, Expires 12/31/2028 | |
| 636 | |
| 65,531 | | |
Globalink Investment, Inc., Strike Price $11.50, Expires 12/03/2026 | |
| 1,224 | |
| 1,264 | | |
Golden Falcon Acquisition Corp., Strike Price $11.50, Expires 11/04/2026 | |
| 191 | |
| 20,390 | | |
Gorilla Technology Group, Inc., Strike Price $11.50, Expires 07/14/2027 | |
| 3,466 | |
| 9,664 | | |
Graf Acquisition Corp. IV, Strike Price $11.50, Expires 05/31/2028 | |
| 3,866 | |
| 32,816 | | |
Growth For Good Acquisition Corp., Strike Price $11.50, Expires 11/12/2026 | |
| 2,986 | |
| 25,071 | | |
Healthcare AI Acquisition Corp., Strike Price $11.50, Expires 12/14/2026 | |
| 1,254 | |
| 24,100 | | |
Hennessy Capital Investment Corp. VI, Strike Price $11.50, Expires 12/31/2027 | |
| 3,615 | |
| 64,668 | | |
Horizon Space Acquisition I Corp., Strike Price $11.50, Expires 01/26/2028 | |
| 3,233 | |
| 44,569 | | |
Hub Cyber Security, Ltd., Strike Price $11.50, Expires 02/27/2028 | |
| 2,006 | |
| 7,150 | | |
Innovative International Acquisition Corp., Strike Price $11.50, Expires 07/01/2028 | |
| 395 | |
| 39,252 | | |
Integrated Rail and Resources Acquisition Corp., Strike Price $11.50, Expires 11/12/2026 | |
| 16,486 | |
| 43,768 | | |
Integrated Wellness Acquisition Corp., Strike Price $11.50, Expires 10/31/2028 | |
| 35,014 | |
| 1,067 | | |
InterPrivate III Financial Partners, Inc., Strike Price $11.50, Expires 12/31/2027 | |
| 29 | |
| 16,682 | | |
Jaws Mustang Acquisition Corp., Strike Price $11.50, Expires 01/30/2026 | |
| 731 | |
| 32,461 | | |
Kairous Acquisition Corp. ltd, Strike Price $11.50, Expires 09/15/2026 | |
| 198 | |
| 31,452 | | |
Kensington Capital Acquisition Corp. V, Strike Price $11.50, Expires 08/13/2028 | |
| 3,843 | |
| 15,057 | | |
Kingswood Acquisition Corp., Strike Price $11.50, Expires 05/01/2027 | |
| 161 | |
| 19,815 | | |
Lakeshore Acquisition II Corp., Strike Price $11.50, Expires 11/18/2026 | |
| 452 | |
| 55,368 | | |
LAMF Global Ventures Corp. I, Strike Price $11.50, Expires 11/11/2026 | |
| 3,389 | |
| 4,787 | | |
Learn CW Investment Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 211 | |
| 19,555 | | |
LF Capital Acquisition Corp. II, Strike Price $11.50, Expires 01/07/2026 | |
| 1,310 | |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note
2) | |
| 49,230 | | |
LIV Capital
Acquisition Corp. II, Strike Price $11.50, Expires 02/16/2027 | |
$ | 985 | |
| 6,397 | | |
M3-Brigade Acquisition
III Corp., Strike Price $11.50, Expires 07/31/2028 | |
| 2,822 | |
| 7,755 | | |
Maquia Capital Acquisition
Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 233 | |
| 32,014 | | |
Mercato Partners Acquisition
Corp., Strike Price $11.50, Expires 12/28/2026 | |
| 1,706 | |
| 16,878 | | |
MicroAlgo, Inc., Strike
Price $11.50, Expires 12/31/2027 | |
| 101 | |
| 41,578 | | |
Monterey Innovation
Acquisition Corp., Strike Price $11.50, Expires 10/01/2026 | |
| 915 | |
| 2,547 | | |
Moringa Acquisition
Corp., Strike Price $11.50, Expires 02/10/2026 | |
| 64 | |
| 13,723 | | |
MSP Recovery, Inc.,
Strike Price $0.01, Expires 02/14/2026 | |
| 3,945 | |
| 20,306 | | |
MultiMetaVerse Holdings,
Ltd., Strike Price $11.50, Expires 03/15/2027 | |
| 1,017 | |
| 51,016 | | |
Murphy Canyon Acquisition
Corp., Strike Price $11.50, Expires 02/03/2027 | |
| 1,439 | |
| 31,288 | | |
Nabors Energy Transition
Corp., Strike Price $11.50, Expires 11/17/2026 | |
| 5,432 | |
| 4,126 | | |
Near Intelligence,
Inc., Strike Price $11.50, Expires 07/08/2027 | |
| 309 | |
| 21,081 | | |
Newbury Street Acquisition
Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 3,468 | |
| 9,620 | | |
Newcourt Acquisition
Corp., Strike Price $11.50, Expires 04/12/2028 | |
| 146 | |
| 4,228 | | |
Northern Revival Acquisition
Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 97 | |
| 34,800 | | |
NorthView Acquisition
Corp., Strike Price $11.50, Expires 08/02/2027 | |
| 1,044 | |
| 5,790 | | |
Nuburu, Inc., Strike
Price $11.50, Expires 09/07/2027 | |
| 194 | |
| 48,836 | | |
OceanTech Acquisitions
I Corp., Strike Price $11.50, Expires 05/10/2026 | |
| 879 | |
| 45,872 | | |
OmniLit Acquisition
Corp., Strike Price $11.50, Expires 11/08/2026 | |
| 2,339 | |
| 8,341 | | |
Onyx Acquisition Co.
I, Strike Price $11.50, Expires 11/30/2028 | |
| 300 | |
| 58,811 | | |
OPY Acquisition Corp.
I, Strike Price $11.50, Expires 09/22/2027 | |
| 3,611 | |
| 23,946 | | |
Osiris Acquisition
Corp., Strike Price $11.50, Expires 05/01/2028 | |
| 1,916 | |
| 52,752 | | |
Oxbridge Acquisition
Corp., Strike Price $11.50, Expires 08/12/2026 | |
| 4,378 | |
| 53,236 | | |
Oxus Acquisition Corp.,
Strike Price $11.50, Expires 08/26/2026 | |
| 5,324 | |
| 1,733 | | |
Peak Bio, Inc., Strike
Price $11.50, Expires 12/31/2027 | |
| 2 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
17 |
RiverNorth
Opportunities Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note 2) | |
5,294 | | |
Phoenix Biotech Acquisition Corp., Strike
Price $11.50, Expires 09/01/2026 | |
$ | 376 | |
25,567 | | |
PHP Ventures Acquisition Corp., Strike Price $11.50, Expires 12/04/2023 | |
| 910 | |
32,271 | | |
Pono Capital Three, Inc., Strike Price $11.50, Expires 04/03/2028 | |
| 1,291 | |
65,632 | | |
Power & Digital Infrastructure Acquisition II Corp., Strike Price $11.50, Expires 12/14/2028 | |
| 4,601 | |
7,982 | | |
Prenetics Global, Ltd., Strike Price $11.50, Expires 05/17/2027 | |
| 407 | |
35,388 | | |
Presto Automation, Inc., Strike Price $11.50, Expires 09/21/2027 | |
| 4,077 | |
16,945 | | |
Priveterra Acquisition Corp. II, Strike Price $11.50, Expires 01/07/2027 | |
| 1,173 | |
19,034 | | |
Project Energy Reimagined Acquisition Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 2,284 | |
34,072 | | |
PROOF Acquisition Corp. I, Strike Price $11.50, Expires 12/03/2028 | |
| 3,077 | |
15,120 | | |
ProSomnus, Inc., Strike Price $11.50, Expires 04/20/2028 | |
| 381 | |
33,768 | | |
Prospector Capital Corp., Strike Price $11.50, Expires 01/01/2025 | |
| 3,897 | |
14,026 | | |
PSQ Holdings, Inc., Strike Price $11.50, Expires 12/31/2028 | |
| 24,545 | |
2,383 | | |
Pyrophyte Acquisition Corp., Strike Price $11.50, Expires 12/17/2023 | |
| 273 | |
30,397 | | |
Quantum FinTech Acquisition Corp., Strike Price $11.50,
Expires 12/31/2027 | |
| 1,064 | |
68,194 | | |
Redwoods Acquisition Corp., Strike Price $11.50, Expires 03/15/2027 | |
| 3,908 | |
37,808 | | |
Relativity Acquisition Corp., Strike Price $11.50, Expires 02/11/2027 | |
| 1,781 | |
64,612 | | |
RF Acquisition Corp., Strike Price $11.50, Expires 05/01/2028 | |
| 1,034 | |
69 | | |
RMG Acquisition Corp. III, Strike Price $11.50, Expires 12/31/2027 | |
| 5 | |
30,975 | | |
Roth CH Acquisition V Co., Strike Price $11.50, Expires 12/10/2026 | |
| 2,747 | |
14,790 | | |
Sandbridge X2 Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 148 | |
21,721 | | |
Screaming Eagle Acquisition Corp., Strike Price $11.50,
Expires 12/15/2027 | |
| 3,258 | |
31,863 | | |
SeaStar Medical Holding Corp., Strike Price $11.50, Expires 01/26/2026 | |
| 1,004 | |
3,201 | | |
Semper Paratus Acquisition Corp., Strike Price $11.50,
Expires 11/04/2026 | |
| 160 | |
17,810 | | |
SHUAA Partners Acquisition Corp. I, Strike Price $11.50,
Expires 03/02/2027 | |
| 1,088 | |
41,618 | | |
Sizzle Acquisition Corp., Strike Price $11.50, Expires 03/12/2026 | |
| 6,613 | |
See
Notes to Financial Statements.
RiverNorth
Opportunities Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note 2) | |
51,043 | | |
SMX Security Matters PLC, Strike Price $11.50, Expires 03/07/2028 | |
$ | 1,026 | |
46,715 | | |
Southland Holdings, Inc., Strike Price $11.50, Expires 09/01/2026 | |
| 42,043 | |
32,793 | | |
Southport Acquisition Corp., Strike Price $11.50, Expires 05/24/2028 | |
| 2,374 | |
10,806 | | |
SportsMap Tech Acquisition Corp., Strike Price $11.50,
Expires 09/01/2027 | |
| 260 | |
77,424 | | |
Spree Acquisition Corp. 1, Ltd., Strike Price $11.50, Expires 12/22/2028 | |
| 2,214 | |
29,011 | | |
SunCar Technology Group, Inc., Strike Price $11.50, Expires 05/18/2028 | |
| 13,055 | |
1,369 | | |
Sustainable Development Acquisition I Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 3 | |
32,785 | | |
Swiftmerge Acquisition Corp., Strike Price $11.50, Expires 06/17/2028 | |
| 2,459 | |
25,664 | | |
TG Venture Acquisition Corp., Strike Price $11.50, Expires 08/13/2023 | |
| 577 | |
953 | | |
TKB Critical Technologies 1, Strike Price $11.50, Expires 10/29/2028 | |
| 66 | |
6,195 | | |
TLGY Acquisition Corp., Strike Price $11.50, Expires 01/14/2028 | |
| 569 | |
19,616 | | |
Tristar Acquisition I Corp., Strike Price $11.50, Expires 12/31/2028 | |
| 1,323 | |
2,277 | | |
Twelve Seas Investment Co. II, Strike Price $11.50, Expires 03/02/2028 | |
| 156 | |
46,027 | | |
UTA Acquisition Corp., Strike Price $11.50, Expires 10/30/2026 | |
| 1,404 | |
15,598 | | |
Vahanna Tech Edge Acquisition I Corp., Strike Price
$11.50, Expires 11/30/2028 | |
| 884 | |
32,618 | | |
Viveon Health Acquisition Corp., Strike Price $11.50, Expires 12/31/2027 | |
| 685 | |
17,165 | | |
Waverley Capital Acquisition Corp. 1, Strike Price
$11.50, Expires 04/30/2027 | |
| 378 | |
52,742 | | |
WinVest Acquisition Corp., Strike Price $11.50, Expires 08/09/2026 | |
| 791 | |
24,668 | | |
Worldwide Webb Acquisition Corp., Strike Price $11.50,
Expires 10/20/2026 | |
| 987 | |
60,341 | | |
Yotta Acquisition Corp., Strike Price $11.50, Expires 03/15/2027 | |
| 730 | |
14,153 | | |
Zapp Electric Vehicles Group, Ltd., Strike Price $11.50,
Expires 03/03/2028 | |
| 568 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
19 |
RiverNorth Opportunities
Fund, Inc. |
Statement
of Investments |
July
31, 2023
Shares | | |
Description | |
Value (Note 2) | |
48,471 | | |
ZyVersa Therapeutics, Inc., Strike Price $11.50, Expires 12/20/2026 | |
$ | 3,393 | |
| |
| | |
TOTAL WARRANTS | |
| | |
(Cost $1,205,350) | |
| 482,004 | |
Principal Amount | | |
Description | |
Rate | | |
Maturity Date | |
Value (Note 2) | |
GOVERNMENT BOND (13.87%) | |
| | | |
| |
| | |
10,662,000 | | |
U.S. Treasury Bond | |
| 3.625 | % | |
02/15/53 | |
| 9,952,938 | |
4,000,000 | | |
U.S. Treasury Bond | |
| 4.000 | % | |
11/15/52 | |
| 3,997,500 | |
3,000,000 | | |
U.S. Treasury Note | |
| 3.000 | % | |
07/31/24 | |
| 2,931,118 | |
5,000,000 | | |
U.S. Treasury Note | |
| 3.250 | % | |
08/31/24 | |
| 4,890,332 | |
10,000,000 | | |
U.S. Treasury Note | |
| 4.250 | % | |
09/30/24 | |
| 9,872,988 | |
1,000,000 | | |
U.S. Treasury Note | |
| 4.500 | % | |
11/30/24 | |
| 990,078 | |
4,000,000 | | |
United States Treasury Bill | |
| 4.690 | % | |
08/10/23 | |
| 3,994,739 | |
| | |
| |
| | | |
| |
| | |
TOTAL GOVERNMENT BOND | |
| | | |
| |
| | |
(Cost $37,346,171) | |
| | | |
| |
| 36,629,693 | |
Shares |
| |
Description | |
7-Day Yield | | |
Value (Note 2) | |
SHORT-TERM INVESTMENTS (12.09%) | |
| | | |
| | |
31,905,465 |
| |
State Street Institutional Treasury Money Market Fund Premier Class | |
| 5.104 | % | |
| 31,905,465 | |
|
| |
| |
| | | |
| | |
TOTAL SHORT-TERM INVESTMENTS |
| | | |
| | |
(Cost $31,905,465) |
| | | |
| 31,905,465 | |
|
| | | |
| | |
TOTAL INVESTMENTS (134.96%) |
| | | |
| | |
(Cost $354,820,963) |
| | | |
$ | 356,479,089 | |
|
| | | |
| | |
Series A Cumulative Perpetual Preferred Shares (-37.01%) |
| | | |
| (97,750,000 | ) |
Other Assets In Excess Of Liabilities (2.05%)(e) |
| | | |
| 5,420,944 | |
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS (100.00%) |
| | | |
$ | 264,150,033 | |
See
Notes to Financial Statements.
RiverNorth
Opportunities Fund, Inc. |
Statement
of Investments |
July
31, 2023
SCHEDULE
OF SECURITIES SOLD SHORT
Description | |
Shares | | |
Value (Note 2) | |
EXCHANGE TRADED FUNDS - COMMON SHARES (-15.49%) | |
| | | |
| | |
Invesco S&P 500 Equal Weight ETF | |
| (225,844 | ) | |
$ | (34,978,719 | ) |
SPDR S&P 500 ETF Trust | |
| (13,000 | ) | |
| (5,951,270 | ) |
| |
| | | |
| | |
TOTAL EXCHANGE TRADED FUNDS - COMMON SHARES | |
| | | |
| (40,929,989 | ) |
| |
| | | |
| | |
TOTAL SECURITIES SOLD SHORT | |
| | | |
| | |
(Proceeds $39,844,356) | |
| | | |
$ | (40,929,989 | ) |
| (a) | All
or a portion of the security is pledged as collateral for securities sold short. As of
July 31, 2023, the aggregate value of those securities was $15,944,000 representing 6.04%
of net assets. |
| (c) | Security
exempt from registration under Rule 144A of the Securities Act of 1933. This security
may be resold in transactions exempt from registration, normally to qualified institutional
buyers. As of July 31, 2023, the market value of those Rule 144A securities held by the
Fund was $6,355,544 representing 2.41% of the Fund's net assets. |
| (d) | Non-income
producing security. |
| (e) | Includes
cash in the amount of $43,389,899 which is being held as collateral for securities sold
short. |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
21 |
RiverNorth
Opportunities Fund, Inc. |
|
Statement
of Assets and Liabilities | July
31, 2023 |
ASSETS: | |
| |
Investments,
at value | |
$ | 356,479,089 | |
Cash | |
| 108,150 | |
Deposit
with broker for securities sold short | |
| 43,389,899 | |
Foreign
currency, at value (Cost $527) | |
| 548 | |
Receivable
for investments sold | |
| 4,842,801 | |
Interest
receivable | |
| 871,235 | |
Dividends
receivable | |
| 326,616 | |
Deferred
offering costs (Note 6) | |
| 166,169 | |
Total
Assets | |
| 406,184,507 | |
| |
| | |
LIABILITIES: | |
| | |
Securities
sold short (Proceeds $39,844,356) | |
| 40,929,989 | |
Dividend
payable - Series A Cumulative Perpetual Preferred Shares | |
| 1,227,188 | |
Payable
for investments purchased | |
| 1,708,022 | |
Payable
to adviser | |
| 398,765 | |
Payable
to administrator | |
| 2,460 | |
Payable
for professional fees | |
| 18,050 | |
Total
Liabilities | |
| 44,284,474 | |
Series
A Cumulative Perpetual Preferred Shares, $0.0001 par value per share, 3,910,000 of shares authorized | |
| | |
Series
A Cumulative Perpetual Preferred Shares (6.00%, $25.00 liquidation value per share, 3,910,000 shares issued and outstanding) | |
$ | 97,750,000 | |
Net
Assets Attributable to Common Shareholders | |
$ | 264,150,033 | |
| |
| | |
NET
ASSETS CONSIST OF: | |
| | |
Paid-in
capital | |
$ | 282,024,668 | |
Total
distributable earnings/(accumulated deficit) | |
| (17,874,635 | ) |
Net
Assets Attributable to Common Shareholders | |
$ | 264,150,033 | |
| |
| | |
PRICING
OF SHARES: | |
| | |
Net
Assets Attributable to Common Shareholders | |
$ | 264,150,033 | |
Shares
of common stock outstanding (37,500,000 of shares authorized, at $0.0001 par value per share) | |
| 21,453,174 | |
Net
Asset Value Per Share Attributable to Common Shareholders | |
$ | 12.31 | |
| |
| | |
Cost
of Investments | |
$ | 354,820,963 | |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Statement
of Operations |
For
the Year Ended July 31, 2023
INVESTMENT INCOME: | |
| |
Dividends | |
$ | 14,121,990 | |
Interest | |
| 4,567,815 | |
Total Investment Income | |
| 18,689,805 | |
| |
| | |
EXPENSES: | |
| | |
Investment advisory fees | |
| 4,472,237 | |
Dividend and interest expense - short sales | |
| 971,443 | |
Legal fees | |
| 246,308 | |
Administration fees | |
| 83,504 | |
Printing fees | |
| 50,527 | |
Director fees | |
| 48,692 | |
Audit and tax fees | |
| 21,726 | |
Transfer agent fees | |
| 8,800 | |
Insurance fees | |
| 4,816 | |
Other expenses | |
| 17,790 | |
Total Expenses | |
| 5,925,843 | |
Net Investment Income | |
| 12,763,962 | |
| |
| | |
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: | |
| | |
Net realized gain/(loss) on: | |
| | |
Investments | |
| (6,630,053 | ) |
Securities sold short | |
| 781,528 | |
Long-term capital gains from other investment companies | |
| 897,316 | |
Net realized loss | |
| (4,951,209 | ) |
Net change in unrealized appreciation/depreciation on: | |
| | |
Investments | |
| 13,376,539 | |
Securities sold short | |
| (2,589,334 | ) |
Translation of assets and liabilities denominated in foreign currencies | |
| 21 | |
Net change in unrealized appreciation/depreciation | |
| 10,787,226 | |
Net Realized and Unrealized Gain on Investments | |
| 5,836,017 | |
Dividends to Series A Cumulative Perpetual Preferred Shares | |
$ | (5,865,000 | ) |
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations | |
$ | 12,734,979 | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
23 |
RiverNorth
Opportunities Fund, Inc.
Statements
of Changes in Net Assets Attributable to Common Shareholders
| |
For
the Year
Ended July
31, 2023 | | |
For
the Year
Ended July
31, 2022 | |
OPERATIONS: | |
| | | |
| | |
Net investment income | |
$ | 12,763,962 | | |
$ | 3,010,738 | |
Net realized loss | |
| (5,848,525 | ) | |
| (644,785 | ) |
Long-term capital gains from other investment
companies | |
| 897,316 | | |
| 1,128,937 | |
Net
change in unrealized appreciation/depreciation | |
| 10,787,226 | | |
| (20,966,192 | ) |
Net
increase/(decrease) in net assets resulting from operations | |
| 18,599,979 | | |
| (17,471,302 | ) |
Distributions to Series A Cumulative Perpetual Preferred Shareholders | |
| (5,865,000 | ) | |
| (1,634,610 | ) |
Net
increase/(decrease) in net assets attributable to common shareholders resulting from operations | |
| 12,734,979 | | |
| (19,105,912 | ) |
| |
| | | |
| | |
TOTAL DISTRIBUTIONS
TO COMMON SHAREHOLDERS: | |
| | | |
| | |
From distributable earnings | |
| (10,767,356 | ) | |
| (15,769,747 | ) |
From
return of capital | |
| (25,211,317 | ) | |
| (22,464,896 | ) |
Net
decrease in net assets from distributions to common shareholders | |
| (35,978,673 | ) | |
| (38,234,643 | ) |
| |
| | | |
| | |
PREFERRED SHARE TRANSACTIONS: | |
| | | |
| | |
Issuance and offering
costs for Cumulative Perpetual Preferred Shares | |
| – | | |
| (3,699,671 | ) |
Net
decrease in net assets attributable to common shareholders from preferred share transactions | |
| – | | |
| (3,699,671 | ) |
| |
| | | |
| | |
COMMON SHARE TRANSACTIONS: | |
| | | |
| | |
Proceeds from sales of shares, net of
offering costs | |
| 37,867,362 | | |
| 95,791,104 | |
Dividend
Reinvestment | |
| 836,635 | | |
| 2,227,599 | |
Net
increase in net assets attributable to common shareholders from capital share transactions | |
| 38,703,997 | | |
| 98,018,703 | |
| |
| | | |
| | |
Net
Increase in Net Assets Attributable to Common Shareholders | |
| 15,460,303 | | |
| 36,978,477 | |
| |
| | | |
| | |
NET ASSETS ATTRIBUTABLE
TO COMMON SHAREHOLDERS: | |
| | | |
| | |
Beginning of period | |
| 248,689,730 | | |
| 211,711,253 | |
End of period | |
$ | 264,150,033 | | |
$ | 248,689,730 | |
| |
| | | |
| | |
OTHER INFORMATION: | |
| | | |
| | |
Common Share Transactions: | |
| | | |
| | |
Shares outstanding - beginning of period | |
| 18,291,243 | | |
| 12,436,466 | |
Shares issued in connection with public
offering | |
| 3,097,795 | | |
| 5,708,985 | |
Shares issued as reinvestment
of dividends | |
| 64,136 | | |
| 145,792 | |
Shares outstanding
- end of period | |
| 21,453,174 | | |
| 18,291,243 | |
See
Notes to Financial Statements.
Intentionally
Left Blank
RiverNorth Opportunities
Fund, Inc. |
Financial Highlights |
For
a common share outstanding throughout the periods presented.
Net
asset value - beginning of period |
Income/(loss) from investment operations: |
Net investment income(a) |
Net realized
and unrealized gain/(loss) |
Total
income/(loss) from investment operations |
Less distributions to common shareholders: |
From net investment income |
From net realized gains |
From
tax return of capital |
Total
distributions to common shareholders |
Less distributions to preferred shareholders: |
From
net investment income(a) |
Total
distributions to preferred shareholders |
Common share transactions: |
Dilutive effect of rights offering |
Common
share offering costs charged to paid-in capital |
Total
common share transactions |
Preferred
Share issuance and offering costs charged to paid-in capital |
Total
preferred share transactions |
Net increase/(decrease)
in net asset value |
Net asset
value - end of period |
Market
price - end of period |
Total Return - Net Asset Value(h) |
Total Return - Market Price(h) |
Supplemental Data: |
Net assets, end of period (in thousands) |
Ratios to Average Net Assets (including dividend
expense and line of credit expense) |
Total expenses |
Net investment
income |
Ratios to Average Net Assets (excluding dividend
expense and line of credit expense) |
Total expenses |
Net investment
income |
Portfolio turnover rate |
Borrowings at End of Period |
Loan Payable (in thousands) |
Asset Coverage Per $1,000 of loan payable (in
thousands)(i) |
Cumulative Perpetual Preferred Stock (in thousands) |
Asset coverage per share of Cumulative Perpetual
Preferred Stock(j) |
Involuntary
liquidating preference per share of Series A Cumulative Perpetual Preferred Stock Average market value per share of Series A Cumulative
Preferred Stock
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Financial Highlights |
For
a common share outstanding throughout the periods presented.
For
the Year
Ended July
31, 2023 | | |
For
the Year
Ended July
31, 2022 | | |
For
the Year
Ended July
31, 2021 | | |
For
the Year
Ended July
31, 2020 | | |
For
the Year
Ended July
31, 2019 | |
$ | 13.60 | | |
$ | 17.02 | | |
$ | 14.89 | | |
$ | 17.39 | | |
$ | 19.07 | |
| | | |
| | | |
| | | |
| | | |
| | |
| 0.62 | | |
| 0.18 | | |
| 0.31 | | |
| 0.41 | | |
| 0.55 | |
| 0.22 | | |
| (0.85 | ) | |
| 4.03 | | |
| (0.56 | ) | |
| 0.29 | |
| 0.84 | | |
| (0.67 | ) | |
| 4.34 | | |
| (0.15 | ) | |
| 0.84 | |
| | | |
| | | |
| | | |
| | | |
| | |
| (0.52 | ) | |
| (0.70 | ) | |
| (0.72 | ) | |
| (0.51 | ) | |
| (0.63 | ) |
| – | | |
| (0.24 | ) | |
| (1.37 | ) | |
| (0.00 | )(b) | |
| (0.41 | ) |
| (1.22 | ) | |
| (1.34 | ) | |
| – | | |
| (1.60 | ) | |
| (1.20 | ) |
| (1.74 | ) | |
| (2.28 | ) | |
| (2.09 | ) | |
| (2.11 | ) | |
| (2.24 | ) |
| | | |
| | | |
| | | |
| | | |
| | |
| (0.28 | ) | |
| (0.10 | ) | |
| – | | |
| – | | |
| – | |
| (0.28 | ) | |
| (0.10 | ) | |
| – | | |
| – | | |
| – | |
| | | |
| | | |
| | | |
| | | |
| | |
| (0.10 | )(c) | |
| (0.13 | )(d) | |
| (0.08 | )(e) | |
| (0.21 | )(f) | |
| (0.26 | )(g) |
| (0.01 | ) | |
| (0.02 | ) | |
| (0.04 | ) | |
| (0.03 | ) | |
| (0.02 | ) |
| (0.11 | ) | |
| (0.15 | ) | |
| (0.12 | ) | |
| 0.24 | | |
| (0.28 | ) |
| – | | |
| (0.22 | ) | |
| – | | |
| – | | |
| – | |
| – | | |
| (0.22 | ) | |
| – | | |
| – | | |
| – | |
| (1.29 | ) | |
| (3.42 | ) | |
| 2.13 | | |
| (2.50 | ) | |
| (1.68 | ) |
$ | 12.31 | | |
$ | 13.60 | | |
$ | 17.02 | | |
$ | 14.89 | | |
$ | 17.39 | |
$ | 11.49 | | |
$ | 14.60 | | |
$ | 18.21 | | |
$ | 14.81 | | |
$ | 17.38 | |
| 4.41 | % | |
| (7.41 | %) | |
| 30.09 | % | |
| (1.75 | %) | |
| 3.77 | % |
| (9.22 | %) | |
| (7.10 | %) | |
| 39.94 | % | |
| (2.22 | %) | |
| 3.33 | % |
| | | |
| | | |
| | | |
| | | |
| | |
$ | 264,150 | | |
$ | 248,690 | | |
$ | 211,711 | | |
$ | 139,166 | | |
$ | 124,664 | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2.29 | % | |
| 1.91 | % | |
| 1.91 | % | |
| 2.06 | % | |
| 2.17 | % |
| 4.93 | % | |
| 1.18 | % | |
| 1.87 | % | |
| 2.59 | % | |
| 3.11 | % |
| | | |
| | | |
| | | |
| | | |
| | |
| 1.91 | % | |
| 1.58 | % | |
| 1.45 | % | |
| 1.54 | % | |
| 1.56 | % |
| 5.31 | % | |
| 1.51 | % | |
| 2.33 | % | |
| 3.11 | % | |
| 3.72 | % |
| 73 | % | |
| 119 | % | |
| 190 | % | |
| 133 | % | |
| 76 | % |
| | | |
| | | |
| | | |
| | | |
| | |
| – | | |
| – | | |
| – | | |
$ | 7,500 | | |
| – | |
| – | | |
| – | | |
| – | | |
| 19,556 | | |
| – | |
$ | 97,750 | | |
$ | 97,750 | | |
| – | | |
| – | | |
| – | |
| 93 | | |
| 89 | | |
| – | | |
| – | | |
| – | |
$ | 25.00 | | |
$ | 25.00 | | |
| – | | |
| – | | |
| – | |
$ | 23.40 | | |
$ | 24.41 | | |
| – | | |
| – | | |
| – | |
See
Notes to Financial Statements.
Annual Report | July 31,
2023 |
27 |
RiverNorth Opportunities
Fund, Inc. |
Financial Highlights |
For
a common share outstanding throughout the periods presented.
| (a) | Calculated
using average common shares throughout the period. |
| (b) | Less
than ($0.005) per share. |
| (c) | Represents
the impact of the Fund's rights offering of 2,752,078 common shares in November 2022
at a subscription price per share based on a formula. For more details, please refer
to Note 8 of the Notes to Financial Statements. |
| (d) | Represents
the impact of the Fund's rights offering of 4,373,407 common shares in November 2021
at a subscription price per share based on a formula. For more details, please refer
to Note 8 of the Notes to Financial Statements. |
| (e) | Represents
the impact of the Fund's rights offering of 575,706 common shares in November 2020 at
a subscription price per share based on a formula. For more details, please refer to
Note 8 of the Notes to Financial Statements. |
| (f) | Represents
the impact of the Fund's rights offering of 2,163,193 common shares in November 2019
at a subscription price per share based on a formula. |
| (g) | Represents
the impact of the Fund's rights offering of 1,790,000 common shares in November 2018.
|
| (h) | Total
investment return is calculated assuming a purchase of a common share at the opening
on the first day and a sale at closing on the last day of each period reported. For purposes
of this calculation, dividends and distributions, if any, are assumed to be reinvested
at prices obtained under the Fund’s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions, if any. Periods less than one year are
not annualized. |
| (i) | Calculated
by subtracting the Fund's total liabilities (excluding the principal amount of Loan Payable)
from the Fund's total assets and dividing by the principal amount of the Loan Payable
and then multiplying by $1,000. |
| (j) | The
asset coverage ratio for a class of senior securities representing stock is calculated
as the Fund's total assets, less all liabilities and indebtedness not represented by
the Fund's senior securities, divided by secured senior securities representing indebtedness
plus the aggregate of the involuntary liquidation preference of secured senior securities
which are stock. With respect to the Preferred Stock, the asset coverage per share is
expressed in terms of dollar amounts per share of outstanding Preferred Stock (based
on a liquidation preference of $25). |
See
Notes to Financial Statements.
RiverNorth Opportunities
Fund, Inc. |
Notes
to Financial Statements |
July 31,
2023
1. ORGANIZATION
River
North Opportunities Fund, Inc. (the “Fund”) is a Maryland corporation registered as a diversified, closed-end management
investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).
The
Fund’s investment objective is total return consisting of capital appreciation and current income. The Fund seeks to achieve
its investment objective by pursuing a tactical asset allocation strategy and opportunistically investing under normal circumstances
in closed-end funds, exchange-traded funds (“ETFs), business development companies (“BDCs” and collectively,
"Underlying Funds") and special purpose acquisition companies ("SPACs"). All Underlying Funds are registered
under the Securities Act of 1933, as amended (the “Securities Act”). The Fund incurs higher and additional expenses
when it invests in Underlying Funds. There is also the risk that the Fund may suffer losses due to the investment practices or
operations of the Underlying Funds. To the extent that the Fund invests in one or more Underlying Funds that concentrate in a
particular industry, the Fund would be vulnerable to factors affecting that industry and the concentrating Underlying Funds’
performance, and that of the Fund, may be more volatile than Underlying Funds that do not concentrate. In addition, one Underlying
Fund may purchase a security that another Underlying Fund is selling.
The
Fund may be converted to an open-end investment company at any time if approved by two-thirds of the Fund's Board of Directors
(the "Board") and at least two-thirds of the Fund’s total outstanding shares. If the Fund converted to an open-end
investment company, it would be required to redeem all preferred stock of the Fund then outstanding, if any (requiring in turn
that it liquidate a portion of its investment portfolio). Conversion to open-end status could also require the Fund to modify
certain investment restrictions and policies. The Board may at any time (but is not required to) propose conversion of the Fund
to open-end status, depending upon its judgment regarding the advisability of such action in light of circumstances then prevailing.
Under
normal circumstances, the Fund intends to maintain long positions in Underlying Funds, but may engage in short sales for investment
purposes. When the Fund engages in a short sale, it sells a security it does not own and, to complete the sale, borrows the same
security from a broker or other institution. The Fund may benefit from a short position when the shorted security decreases in
value.
2.
SIGNIFICANT ACCOUNTING POLICIES
Use
of Estimates: The preparation of the financial statements in accordance with accounting principles generally accepted in the
United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts
and disclosures, including the disclosure of contingent assets and liabilities, in the financial statements during the period
reported. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those
estimates, and the security valuations reflected in the financial statements may differ from the value the Fund ultimately realizes
upon sale of the securities. The Fund is considered an investment company under GAAP and follows the accounting and reporting
guidance applicable to investment companies in the Financial Accounting Standards Board
Accounting Standards Codification (“ASC”) Topic 946. The financial statements have been prepared as of the close
of the New York Stock Exchange (“NYSE”) on July 31, 2023.
Annual Report
| July 31, 2023 |
29 |
RiverNorth Opportunities
Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
Portfolio
Valuation: The Fund's investments are generally valued at their fair value using market quotations. If a market quotation
is unavailable, a security may be valued at its estimated fair value as described in Note 3.
Securities
Transactions and Investment Income: Investment security transactions are accounted for on a trade date basis. Dividend income
is recorded on the ex-dividend date. Interest income, which includes accretion of discounts and amortization of premiums calculated
using yield to maturity, is accrued and recorded as earned. Realized gains and losses from securities transactions and unrealized
appreciation and depreciation of securities are determined using the specific identification method for both financial reporting
and tax purposes.
Preferred
Stock: In accordance with ASC 480-10-25, the Fund's Series A Term preferred shares have been classified as equity on the Statement
of Assets and Liabilities. Refer to "Note 7. Cumulative Perpetual Preferred Stock" for further details.
Fair
Value Measurements: Fair value is defined as the price that the Fund might reasonably expect to receive upon selling an investment
in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes
a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish
classification of fair value measurements for disclosure purposes.
Inputs
refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about
risk, for example, the risk inherent in a particular valuation technique used to measure fair value including using such a pricing
model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable
inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based
on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting
entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances.
Various
inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels
listed below.
|
Level 1 – |
Unadjusted quoted prices in active markets for identical investments,
unrestricted assets or liabilities that the Fund has the ability to access at the measurement date; |
|
|
|
|
Level 2 – |
Quoted prices which are not active, quoted prices for similar assets or liabilities in active
markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full
term of the asset or liability; and |
|
|
|
|
Level 3 – |
Significant unobservable prices or inputs (including the Fund’s own assumptions in
determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement
date. |
RiverNorth Opportunities
Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the
lowest level input that is significant to the fair value measurement in its entirety.
Equity
securities, including closed-end funds and business development company notes, are generally valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately
reflect the fair market value of such securities. Securities that are traded on any stock exchange are generally valued by the
pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the
pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing
service at the NASDAQ Official Closing Price. When using the market quotations or close prices provided by the pricing service
and when the market is considered active, the security will be classified as a Level 1 security. Sometimes, an equity security
owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered
inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available,
when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect
the current fair value, or when restricted or illiquid securities are being valued, such securities are valued as determined in
good faith by the Adviser, as valuation designee, in conformity with guidelines adopted by and subject to review by the Board.
These securities will be categorized as Level 3 securities.
Investments
in mutual funds, including short term investments, are generally priced at the ending NAV provided by the service agent of the
funds. These securities will be classified as Level 1 securities.
Domestic
and foreign fixed income securities, including foreign and U.S. corporate bonds, foreign and U.S. government bonds, non-agency
collateralized mortgage obligations, U.S. Government/Agency mortgage backed securities, bank loans, and collateralized loan obligations
are normally valued on the basis of quotes obtained from brokers and dealers or independent pricing services. Foreign currency
positions, including forward foreign currency contracts, are priced at the mean between the closing bid and asked prices at 4:00
p.m. Eastern Time. Prices obtained from independent pricing services typically use information provided by market makers or estimates
of market values obtained from yield data relating to investments or securities with similar characteristics. Data used to establish
quotes includes analysis of cash flows, pre-payment speeds, default rates, delinquency assumptions and assumptions regarding collateral
and loss assumptions. These securities will be classified as Level 2 securities.
Pursuant
to the requirements of Rule 2a-5 under the 1940 Act, the Board approved updated valuation procedures for the Fund and designated
the Adviser as the Fund's valuation designee to make all fair valuation determinations with respect to the Fund's portfolio investments,
subject to the Board's oversight.
In
accordance with the Fund’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant
to the value of securities for which it has determined other pricing sources are not available or reliable as described above.
No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case.
As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount
which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this
principle may, for example, be based on (i) a multiple of earnings; (ii) discounted cash flow models; (iii) weighted average cost
or weighted average price; (iv) a discount from market of a similar freely traded security (including a derivative security or
a basket of securities traded on other markets, exchanges or among dealers); or (v) yield to maturity with respect to debt issues,
or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity
of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a
small number of quotations, a significant event occurs after the close of a market but before the Fund’s NAV calculation
that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of
market quotations.
Annual Report
| July 31, 2023 |
31 |
RiverNorth Opportunities
Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
Good
faith pricing may also be used in instances when the bonds in which the Fund invests default or otherwise cease to have market
quotations readily available.
The
following is a summary of the inputs used to value the Fund’s investments as of July 31, 2023:
Investments in Securities at Value | |
Level 1 -
Quoted
Prices | |
Level 2 -
Other Significant
Observable
Inputs | |
Level 3 - Significant
Unobservable
Inputs | |
Total |
Closed-End Funds - Common Shares | |
$ | 196,385,316 | | |
$ | – | | |
$ | – | | |
$ | 196,385,316 | |
Business Development Companies - Preferred Shares | |
| 9,014,668 | | |
| – | | |
| – | | |
| 9,014,668 | |
Business Development Company Notes | |
| – | | |
| 6,605,606 | | |
| – | | |
| 6,605,606 | |
Corporate Bonds | |
| – | | |
| 31,746,821 | | |
| – | | |
| 31,746,821 | |
Special Purpose Acquisition Companies -
Common Shares/Units | |
| 43,501,295 | | |
| – | | |
| – | | |
| 43,501,295 | |
Rights | |
| 175,519 | | |
| 32,702 | | |
| – | | |
| 208,221 | |
Warrants | |
| 467,717 | | |
| 14,287 | | |
| – | | |
| 482,004 | |
Government Bond | |
| – | | |
| 36,629,693 | | |
| – | | |
| 36,629,693 | |
Short-Term Investments | |
| 31,905,465 | | |
| – | | |
| – | | |
| 31,905,465 | |
Total | |
$ | 281,449,980 | | |
$ | 75,029,109 | | |
$ | – | | |
$ | 356,479,089 | |
Other Financial Instruments Liabilities: | |
| | | |
| | | |
| | | |
| | |
Securities Sold Short Exchange Traded Funds
- Common Shares | |
$ | (40,929,989 | ) | |
$ | – | | |
$ | – | | |
$ | (40,929,989 | ) |
Total | |
$ | (40,929,989 | ) | |
$ | – | | |
$ | – | | |
$ | (40,929,989 | ) |
RiverNorth Opportunities Fund, Inc. |
Notes to Financial Statements |
July
31, 2023
The
Fund did not have any securities that used significant unobservable inputs (Level 3) in determining fair value, and there were
no transfers into or out of Level 3, during the year.
Short
Sale Risks: The Fund and the Underlying Funds may engage in short sales. A short sale is a transaction in which a fund sells
a security it does not own in anticipation that the market price of that security will decline. To establish a short position,
a fund must first borrow the security from a broker or other institution. The fund may not always be able to borrow a security
at a particular time or at an acceptable price. Accordingly, there is a risk that a fund may be unable to implement its investment
strategy due to the lack of available securities or for other reasons. After selling a borrowed security, a fund is obligated
to “cover” the short sale by purchasing and returning the security to the lender at a later date. Until the security
is replaced, the Fund is required to pay the lender amounts equal to the dividend or interest that accrue during the period which
is recorded as an expense on the Statement of Operations. A Fund may also incur stock loan fees which represent the cost of borrowing
securities used for short sale transactions. A Fund may also earn rebates as an element of the broker arrangement, which are recorded
as an offset to stock loan fees on short sales transactions. The stock loan fees on short sales are recognized on the Statement
of Operations. In the event that rebates exceed the stock loan fees on short sales, the net rebates are recognized as a component
of interest income on the Statement of Operations. The Fund and the Underlying Funds cannot guarantee that the security will be
available at an acceptable price. Positions in shorted securities are speculative and more risky than long positions (purchases)
in securities because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus
the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore, in theory, securities
sold short have unlimited risk. Short selling will also result in higher transaction costs (such as interest and dividends), and
may result in higher taxes, which reduce a fund’s return.
Special
Purpose Acquisition Company Risk: The Fund may invest in SPACs. SPACs are collective investment structures that pool funds
in order to seek potential acquisition opportunities. SPACs are generally publicly traded companies that raise funds through an
initial public offering (“IPO”) for the purpose of acquiring or merging with another company to be identified subsequent
to the SPAC’s IPO. The securities of a SPAC are often issued in “units” that include one share of common stock
and one right or warrant (or partial right or warrant) conveying the right to purchase additional shares or partial shares. Unless
and until an acquisition is completed, a SPAC generally invests its assets (less an amount to cover expenses) in U.S. Government
securities, money market fund securities and cash. SPACs and similar entities may be blank check companies with no operating history
or ongoing business other than to seek a potential acquisition. Accordingly, the value of their securities is particularly dependent
on the ability of the entity’s management to identify and complete a profitable acquisition. Certain SPACs may seek acquisitions
only in limited industries or regions, which may increase the volatility of their prices. If an acquisition or merger that meets
the requirements for the SPAC is not completed within a predetermined period of time, the invested funds are returned to the entity’s
shareholders, less certain permitted expenses. Accordingly, any rights or warrants issued by the SPAC will expire worthless. Certain
private investments in SPACs may be illiquid and/or be subject to restrictions on resale. Additionally, the Fund may acquire certain
private rights and other interests issued by a SPAC (commonly referred to as “founder shares”), which may be subject
to forfeiture or expire worthless and which typically have more limited liquidity than SPAC shares issued in an IPO. To the extent
the SPAC is invested in cash or similar securities, this may impact the Fund’s ability to meet its investment objective.
Annual Report
| July 31, 2023 |
33 |
RiverNorth Opportunities Fund, Inc. |
Notes to Financial Statements |
July
31, 2023
Private
Debt Risk: The Fund may invest in notes issued by private funds (“private debt”). Private debt often may be illiquid
and is typically not listed on an exchange and traded less actively than similar securities issued by public funds. For certain
private debt, trading may only be possible through the assistance of the broker who originally brought the security to the market
and has a relationship with the issuer. Due to the limited trading market, independent pricing services may be unable to provide
a price for private debt, and as such the fair value of the securities may be determined in good faith under procedures approved
by the Board, which typically will include the use of one or more independent broker quotes.
Rights
and Warrants Risks: Warrants are securities giving the holder the right, but not the obligation, to buy the stock of an issuer
at a given price (generally higher than the value of the stock at the time of issuance) during a specified period or perpetually.
Warrants do not carry with them the right to dividends or voting rights with respect to the securities that they entitle their
holder to purchase and they do not represent any rights in the assets of the issuer. As a result, warrants may be considered to
have more speculative characteristics than certain other types of investments. In addition, the value of a warrant does not necessarily
change with the value of the underlying securities and a warrant ceases to have value if it is not exercised prior to its expiration
date.
Rights
are usually granted to existing shareholders of a corporation to subscribe to shares of a new issue of common stock before it
is issued to the public. The right entitles its holder to buy common stock at a specified price. Rights have similar features
to warrants, except that the life of a right is typically much shorter, usually a few weeks.
On
October 28, 2020, the SEC adopted Rule 18f-4 under the 1940 Act providing for the regulation of the use of derivatives and certain
related instruments by registered investment companies. Rule 18f-4 prescribes specific value-at-risk leverage limits for certain
derivatives users. In addition, Rule 18f-4 requires certain derivatives users to adopt and implement a derivatives risk management
program (including the appointment of a derivatives risk manager and the implementation of certain testing requirements) and prescribes
reporting requirements in respect of derivatives. Subject to certain conditions, if a fund qualifies as a “limited derivatives
user,” as defined in Rule 18f-4, it is not subject to the full requirements of Rule 18f-4. In connection with the adoption
of Rule 18f-4, the SEC rescinded certain of its prior guidance regarding asset segregation and coverage requirements in respect
of derivatives transactions and related instruments. The Fund was required to comply with Rule 18f-4 beginning August 19, 2022
and has adopted procedures for investing in derivatives and other transactions in compliance with Rule 18f-4. Rule 18f-4 under
the 1940 Act requires funds that invest in derivatives above a specified amount to adopt and implement a derivatives risk management
program ("DRMP") administered by a derivatives risk manager that is appointed by and overseen by the fund's board of
trustees, and to comply with an outer limit on fund leverage risk based on value at risk, or "VaR." The Fund has established
a DRMP and appointed a derivatives risk manager to administer the DRMP, consistent with Rule 18f-4.
During
the year ended July 31, 2023, the Fund invested in rights and warrants, which are disclosed in the Statement of Investments.
RiverNorth
Opportunities Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
The
effect of derivative instruments on the Statement of Assets and Liabilities as of July 31, 2023:
| |
Asset Derivatives | |
| |
Risk Exposure | |
Statement
of Assets and Liabilities Location | |
Value | |
Equity
Contracts (Rights) | |
Investments, at value | |
$ | 208,221 | |
Equity Contracts (Warrants) | |
Investments, at value | |
| 482,004 | |
| |
| |
$ | 690,225 | |
The
effect of derivative instruments on the Statement of Operations for the year ended July 31, 2023:
Risk Exposure | |
Statement of Operations
Location | |
Realized
Gain/(Loss)
on
Derivatives | | |
Change in
Unrealized
Appreciation/
(Depreciation)
on
Derivatives | |
Equity
Contracts (Rights) | |
Net realized
gain/(loss) on investments/ Net change in unrealized appreciation/depreciation on investments | |
$ | (20,599 | ) | |
$ | 116,471 | |
Equity Contracts (Warrants) | |
Net realized gain/(loss)
on investments/ Net change in unrealized appreciation/depreciation on investments | |
| (703,774 | ) | |
| 644,415 | |
Total | |
| |
$ | (724,373 | ) | |
$ | 760,886 | |
The
Fund’s average fair value of rights and warrants held for the year ended July 31, 2023 were $172,729 and $415,845 respectively.
Other:
The Fund holds certain investments which pay dividends to their shareholders based upon available funds from operations. It
is possible for these dividends to exceed the underlying investments’ taxable earnings and profits resulting in the excess
portion of such dividends being designated as a return of capital. Distributions received from investments in securities that
represent a return of capital or long-term capital gains are recorded as a reduction of the cost of investments or as a realized
gain, respectively.
3.
INVESTMENT ADVISORY AND OTHER AGREEMENTS
Effective
October 1, 2022, RiverNorth Capital Management, LLC ("RiverNorth") serves as the adviser to the Fund under the Fund's
new Investment Advisory Agreement with RiverNorth (the "Advisory Agreement"). Effective October 1, 2022, the Fund pays
the Adviser a management fee payable on a monthly basis at the annual rate of 1.30% of the Fund’s average daily Managed
Assets (as defined below) for the services it provides. This management fee paid by the Fund to the Adviser is essentially an
all-in fee structure (the “Unified Management Fee”) and, as part of the unified management fee, the Adviser provides
or causes to be furnished all supervisory and administrative and
other services reasonably necessary for the operation of the Fund, except the Fund pays, in addition to the unified management
fee, taxes and governmental fees (if any) levied against the Fund; brokerage fees and commissions and other portfolio transaction
expenses incurred by or for the Fund; costs of borrowing money including interest expenses or engaging in other types of leverage
financing; dividend and/or interest expenses and other costs associated with the Fund’s issuance, offering, redemption and
maintenance of preferred shares or other instruments for the purpose of incurring leverage; fees and expenses of any underlying
funds in which the Fund invests; dividend and interest expenses on short positions taken by the Fund; fees and expenses, including
travel expenses and fees and expenses of legal counsel retained for the benefit of the Fund or directors of the Fund who are not
officers, employees, partners, stockholders or members of the Adviser or its affiliates; fees and expenses associated with and
incident to stockholder meetings and proxy solicitations involving contested elections of directors, stockholder proposals or
other non-routine matters that are not initiated or proposed by the Adviser; legal, marketing, printing, accounting and other
expenses associated with any future share offerings, such as rights offerings and shelf offerings, following the Fund’s
initial offering; expenses associated with tender offers and other share repurchases and redemptions; and other extraordinary
expenses, including extraordinary legal expenses, as may arise, including, without limit, expenses incurred in connection with
litigation, proceedings, other claims and the legal obligations of the Fund to indemnify its directors, officers, employees, stockholders,
distributors and agents with respect thereto. The Unified Management Fee is designed to pay substantially all of the Fund's expenses
and to compensate the Adviser for providing services for the Fund.
Annual Report | July 31,
2023 |
35 |
RiverNorth
Opportunities Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
Formerly,
ALPS Advisors, Inc. (“AAI”) served as the Fund’s investment adviser pursuant to an Investment Advisory Agreement
with the Fund. As compensation for its services to the Fund, AAI received a management fee payable on a monthly basis at the annual
rate of 1.00% of the Fund's average daily Managed Assets (as defined below). Formerly, RiverNorth served as the sub-adviser to
the Fund pursuant to an Investment Sub-Advisory Agreement between AAI and RiverNorth. As compensation for RiverNorth's services
to the Fund as sub-adviser, AAI paid RiverNorth a sub-advisory fee payable on a monthly basis at the annual rate of 0.85% of
the Fund’s average daily Managed Assets. For the year ended July 31, 2023, the prior and current Adviser earned fees of
$4,472,237, of which $398,765 remained payable at July 31, 2023.
ALPS
Fund Services, Inc. (‘‘AFS’’) serves as administrator to the Fund. Under an Administration, Bookkeeping
and Pricing Services Agreement, AFS is responsible for calculating the net asset values, providing additional fund accounting
and tax services, and providing fund administration and compliance-related services to the Fund. AFS is entitled to receive a
monthly fee, accrued daily based on the Fund’s average Managed Assets, as defined below, plus a fixed fee for completion
of certain regulatory filings and reimbursement for certain out-of-pocket expenses. Effective October 1, 2022, these fees are
paid by the Adviser, not the Fund, out of the Unified Management Fee.
DST
Systems, Inc. (‘‘DST’’), the parent company of AFS, serves as the Transfer Agent to the Fund. Under the
Transfer Agency Agreement, DST is responsible for maintaining all shareholder records of the Fund. DST is a wholly-owned subsidiary
of SS&C Technologies Holdings, Inc. (“SS&C”), a publicly traded company listed on the NASDAQ Global Select
Market. Effective October 1, 2022, these fees are paid by the Adviser, not the Fund, out of the Unified Management Fee.
RiverNorth
Opportunities Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
State
Street Bank & Trust Co. serves as the Fund's custodian. Effective October 1, 2022, the fees of State Street Bank & Trust
Co. are paid by the Adviser, not the Fund, out of the Unified Management Fee.
The
Fund pays no salaries or compensation to its officers or to interested Directors employed by the Adviser. For their services,
the Directors of the Fund, who are not employed by the Adviser, receive an annual retainer in the amount of $17,000, an additional
$2,000 for attending each meeting of the Board and $1,000 for attending a special meeting of the Board. The Directors not employed
by the Adviser, are also reimbursed for all reasonable out-of-pocket expenses relating to attendance at meetings of the Board.
Effective October 1, 2022, these fees are paid by the Adviser, not the Fund, out of the Unified Management Fee.
The
Chief Compliance Officer ("CCO") of the Fund is an employee of the Adviser. The Fund reimburses the Adviser for certain
compliance costs related to the Fund, including a portion of the CCO's compensation.
Managed
Assets: For these purposes, the term Managed Assets is defined as the total assets of the Fund, including assets attributable
to leverage, minus liabilities (other than debt representing leverage and any preferred stock that may be outstanding).
4.
LEVERAGE
The
Fund may use leverage for investment purposes, which may include the use of borrowings, the issuance of preferred stock, and/or
the use of derivatives or other transactions that may provide leverage (such as the investment of proceeds received from selling
securities short). The Adviser will assess whether or not to engage in leverage based on its assessment of conditions in the debt
and credit markets. Leverage, if used, may take the form of a borrowing or the issuance of preferred stock, although the Fund
currently anticipates that leverage will primarily be obtained through the use of bank borrowings or other similar term loans.
The
provisions of the 1940 Act further provide that the Fund may borrow or issue notes or debt securities in an amount up to 33 1/3%
of its total assets or may issue preferred shares in an amount up to 50% of the Fund’s total assets (including the proceeds
from leverage). Notwithstanding each of the limits discussed above, the Fund may enter into derivatives or other transactions
(e.g., total return swaps) that may provide leverage (other than through borrowings or the issuance of preferred stock), but which
are not subject to the above foregoing limitations, if the Fund earmarks or segregates liquid assets (or enters into offsetting
positions) in accordance with applicable SEC regulations and interpretations to cover its obligations under those transactions
and instruments. However, these transactions will entail additional expenses (e.g., transaction costs) which will be borne by
the Fund.
If
the net rate of return on the Fund’s investments purchased with the leverage proceeds exceeds the interest or dividend rate
payable on the leverage, such excess earnings will be available to pay higher dividends to the Fund’s stockholders. If the
net rate of return on the Fund’s investments purchased with leverage proceeds does not exceed the costs of leverage, the
return to stockholders will be less than if leverage had not been used. The use of leverage magnifies gains and losses to stockholders.
Since the stockholders pay all expenses related to the issuance of debt or use of leverage, any use of leverage would create a
greater risk of loss for stockholders than if leverage is not used. There can be no assurance that a leveraging strategy will
be successful during any period in which it is employed.
Annual Report | July 31,
2023 |
37 |
RiverNorth
Opportunities Fund, Inc. |
Notes
to Financial Statements |
July
31, 2023
The
Fund entered into a $65,000,000 credit agreement for margin financing with Pershing LLC (the "Pershing Credit Agreement").
Per the Pershing Credit Agreement, the Fund may borrow at an interest rate of 0.85% plus the Overnight Bank Funding Rate. Prior
to March 20, 2022, the Fund borrowed at an interest rate of 1.10% plus the Overnight Bank Funding Rate. The Pershing Credit Agreement
does not have an expiration date.
There
was no outstanding balance on and the Fund did not borrow the credit facility during the year ended July 31, 2023.
5.
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The
Fund intends to make regular monthly distributions to stockholders at a constant and fixed (but not guaranteed) rate that is reset
annually to a rate equal to a percentage of the average of the Fund’s NAV per share (the “Distribution Amount”),
as reported for the final five trading days of the preceding calendar year (the “Distribution Rate Calculation”).
The Distribution Amount is set by the Board and may be adjusted from time to time. The Fund’s intention is that monthly
distributions paid to stockholders throughout a calendar year will be at least equal to the Distribution Amount (plus any additional
amounts that may be required to be included in a distribution for federal or excise tax purposes) and that, on the close of the
calendar year, the Distribution Amount applicable to the following calendar year will be reset based upon the new results of the
Distribution Rate Calculation.
Dividends
and distributions may be payable in cash or shares of common stock, with stockholders having the option to receive additional
common stock in lieu of cash. 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 more stable level of distributions. As a result, the
dividend paid by the Fund to common stockholders for any particular period may be more or less than the amount of net investment
income earned by the Fund during such period. Any distribution that is treated as a return of capital generally will reduce a
shareholder’s basis in his or her shares, which may increase the capital gain or reduce the capital loss realized upon the
sale of such shares. Any amounts received in excess of a shareholder’s basis are generally treated as capital gain, assuming
the shares are held as capital assets. The Fund’s ability to maintain a stable level of distributions to stockholders will
depend on a number of factors, including the stability of income received from its investments and the costs of any leverage.
As portfolio and market conditions change, the amount of dividends on the Fund’s common stock could change. For federal
income tax purposes, the Fund is required to distribute substantially all of its net investment income each year to both reduce
its federal income tax liability and to avoid a potential federal excise tax. The Fund intends to distribute all realized net
capital gains, if any, at least annually.
6.
CUMULATIVE PERPETUAL PREFERRED STOCK
At
July 31, 2023, the Fund had issued and outstanding 3,910,000 shares of Series A Cumulative Perpetual Preferred Stock, listed under
trading symbol RIVPRA on the NYSE, with a par value of $0.0001 per share and a liquidation preference of $25.00 per share plus
accrued and unpaid dividends (whether or not declared). The Fund issued 3,910,000 shares of Series A Cumulative Perpetual
Preferred Stock on April 20, 2022. The Series A Cumulative Perpetual Preferred Stock is entitled to voting rights and a dividend
at a rate of 6.00% per year, paid quarterly, based on the $25.00 liquidation preference before the common stock is entitled to
receive any dividends. The Series A Cumulative Perpetual Preferred Stock is generally not redeemable at the Fund’s option
prior to May 15, 2027, and is subject to mandatory redemption by the Fund in certain circumstances. On or after May 15, 2027,
the Fund may redeem in whole, or from time to time in part, outstanding Series A Cumulative Perpetual Preferred Stock at a redemption
price per share equal to the per share liquidation preference of $25.00 per share, plus accumulated and unpaid dividends, if any,
through the date of redemption.
RiverNorth
Opportunities Fund, Inc. |
Notes
to Financial Statements |
July 31, 2023
Series | |
First Redemption Date | |
Fixed Rate | | |
Shares Outstanding | | |
Aggregate Liquidation Preference | | |
Fair Value | |
Series A | |
May 15, 2027 | |
| 6.000% | | |
| 3,910,000 | | |
$ | 97,750,000 | | |
$ | 91,806,800 | |
7.
CAPITAL TRANSACTIONS
The
Fund’s authorized capital stock consists of 37,500,000 shares of common stock, $0.0001 par value per share, all of which
is initially classified as common shares. Under the rules of the NYSE applicable to listed companies, the Fund is required to
hold an annual meeting of stockholders in each year.
Under
the Fund’s Charter, the Board is authorized to classify and reclassify any unissued shares of stock into other classes or
series of stock and authorize the issuance of shares of stock without obtaining stockholder approval. Also, the Fund’s Board,
with the approval of a majority of the entire Board, but without any action by the stockholders of the Fund, may amend the Fund’s
Charter from time to time to increase or decrease the aggregate number of shares of stock of the Fund or the number of shares
of stock of any class or series that the Fund has authority to issue.
During
the years ended July 31, 2022 and July 31, 2023, the Board approved rights offerings to participating shareholders of record who
were allowed to subscribe for new common shares of the Fund. Record date shareholders received one right for each common share
held on the respective record dates. For every three rights held, a holder of the rights was entitled to buy one new common share
of the Fund. Record date shareholders who fully exercised all rights initially issued to them in the primary subscription were
entitled to buy those common shares that were not purchased by other record date shareholders. The Fund issued new shares of common
stock at 95% of NAV per share for the October 2, 2020 rights offering, and at 97.5% of NAV per share for the October 1, 2021 rights
offering. Offering costs were charged to paid-in-capital upon the exercise of the rights.
Annual Report | July 31,
2023 |
39 |
RiverNorth Opportunities
Fund, Inc. |
Notes
to Financial Statements |
July 31, 2023
The
shares of common stock issued, subscription price, and offering costs for the rights offerings were as follows:
Record
Date | |
Expiration
Date | |
Shares
of common stock issued | | |
Subscription
price | | |
Gross
Proceeds | | |
Offering
costs | | |
Net
Proceeds | |
October
1, 2021 | |
November
5, 2021 | |
| 4,373,407 | | |
$ | 16.81 | | |
$ | 73,516,972 | | |
$ | 191,237 | | |
$ | 73,325,735 | |
October 14, 2022 | |
November 8, 2022 | |
| 2,752,078 | | |
$ | 11.97 | | |
$ | 32,942,374 | | |
$ | 208,954 | | |
$ | 32,733,420 | |
On
August 31, 2018, the Fund entered into a sales agreement with Jones Trading Institutional Services LLC ("Jones"), under
which the Fund may from time to time offer and sell up to 3,300,000 of the Fund's common stock in an "at-the-market"
offering. On November 11, 2020, the agreement with Jones was terminated and the Fund entered into a distribution agreement with
ALPS Distributors, Inc. (“ADI”), pursuant to which the Fund may offer and sell up to 3,196,130 shares of the Fund's
common stock from time to time through ADI. On September 17, 2021, the Fund entered into a new distribution agreement with ADI,
as amended, pursuant to which the Fund may offer and sell an additional 5,000,000 shares of the Fund's common stock from time
to time through ADI, for a total of 8,196,130 shares.
The
shares of common stock issued, gross proceeds from the sale of shares, and commissions to Jones and ADI were as follows:
Period Ended | | |
Shares of common stock issued | | |
Gross Proceeds | | |
Commissions | | |
Offering Costs | | |
Net Proceeds | |
July 31, 2022 | | |
| 1,335,578 | | |
$ | 22,707,554 | | |
$ | 227,219 | * | |
$ | 14,966 | | |
$ | 22,465,369 | |
July 31, 2023 | | |
| 345,717 | | |
$ | 5,144,378 | | |
$ | 51,562 | * | |
$ | 8,378 | | |
$ | 5,084,438 | |
| * | Includes
commissions in the amount of $45,415 and $10,289 retained by the Fund's related party
distributor, ADI for the years ended July 31, 2022 and July 31, 2023, respectively. |
The
Fund's 2020 rights offering and previous at-the-market offerings were made under the shelf registration statement that was initially
effective with the SEC on July 26, 2018. Offering costs incurred through July 31, 2023 as a result of the Fund's shelf registration
statement initially effective with the SEC on September 17, 2021 are approximately $1,192,419. The Fund's 2021 and 2022 rights
offerings, the current at-the-market offering and preferred shares offering were made under this shelf registration statement.
The Statement of Assets and Liabilities reflects the deferred offering costs of $166,169 as accrued offering costs. These offering
costs, as well as offering costs incurred subsequent to July 31, 2023, will be charged to paid-in-capital upon the issuance of
shares.
Additional
shares of the Fund may be issued under certain circumstances, including pursuant to the Fund’s Automatic Dividend Reinvestment
Plan, as defined within the Fund’s organizational documents. Additional information concerning the Automatic Dividend Reinvestment
Plan is included within this report.
RiverNorth
Opportunities Fund, Inc. |
Notes to Financial Statements |
July 31, 2023
8.
PORTFOLIO INFORMATION
Purchases
and Sales of Securities: For the year ended July 31, 2023, the cost of purchases and proceeds from sales of securities, excluding short-term securities,
were $242,872,868, and $252,400,237, respectively.
9.
TAXES
Classification
of Distributions: Net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes.
The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund.
The
tax character of distributions paid during the years ended July 31, 2023 and July 31, 2022 was as follows:
| |
For the Year Ended July 31, 2023 | | |
For the Year Ended July 31, 2022 | |
Ordinary Income (Common) | |
$ | 10,767,356 | | |
$ | 10,126,899 | |
Ordinary Income (Preferred) | |
| 4,637,812 | | |
| 412,822 | |
Tax-Exempt Income | |
| – | | |
| – | |
Long-Term Capital Gain | |
| – | | |
| 5,642,848 | |
Return of Capital | |
| 25,211,317 | | |
| 22,464,896 | |
Total | |
$ | 40,616,485 | | |
$ | 38,647,465 | |
Components
of Distributable Earnings on a Tax Basis: The tax components of distributable earnings are determined in accordance with income
tax regulations which may differ from the composition of net assets reported under GAAP. Accordingly, for the year ended July
31, 2023, certain differences were reclassified. The amounts reclassified did not affect net assets and were primarily related
to the prior year tax return true-up. The reclassifications were as follows:
Paid-in capital | | |
Total distributable earnings/(accumulated deficit) | |
$ | (328,611 | ) | |
$ | 328,611 | |
At
July 31, 2023, the components of distributable earnings on a tax basis for the Fund were as follows:
Accumulated Capital Loss | |
$ | (11,405,686 | ) |
Unrealized Depreciation | |
| (5,241,761 | ) |
Preferred Distributions Payable | |
| (1,227,188 | ) |
Total | |
$ | (17,874,635 | ) |
Capital
Losses: As of July 31, 2023, the Fund had capital loss carryforwards which may reduce the Fund’s taxable income arising
from future net realized gains on investments, if any, to the extent permitted by the IRC and thus may reduce the amount of the
distributions to shareholders which would
otherwise be necessary to relieve the Fund of any liability for federal tax pursuant to the IRC. The capital loss carryforwards
may be carried forward indefinitely. Capital losses carried forward for the year ended July 31, 2023, were as follows:
Annual Report | July 31,
2023 |
41 |
RiverNorth
Opportunities Fund, Inc. |
Notes to Financial Statements |
July 31,
2023
| |
Short-Term | |
RiverNorth Opportunities Fund, Inc. | |
$ | 11,405,686 | |
Tax
Basis of Investments: Net unrealized appreciation/(depreciation) of investments based on federal tax cost as of July 31, 2023,
was as follows:
Cost of investments for income tax purposes | |
$ | 360,635,238 | |
Gross appreciation on investments (excess of value over tax cost)(a) | |
| 12,808,785 | |
Gross depreciation on investments (excess of tax cost over value)(a) | |
| (18,050,567 | ) |
Net appreciation of foreign currency and derivatives | |
| 21 | |
Net unrealized depreciation on investments | |
$ | (5,241,761 | ) |
| (a) | Includes
appreciation/(depreciation) on securities sold short. |
The
differences between book-basis and tax-basis are primarily due to wash sales, investments in passive foreign investment companies,
and the tax treatment of certain other investments.
Federal
Income Tax Status: For federal income tax purposes, the Fund currently qualifies, and intends to remain qualified, as a regulated
investment company under the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing substantially
all of its investment company taxable net income and realized gain, not offset by capital loss carryforwards, if any, to its shareholders.
No provision for federal income taxes has been made.
As
of and during the year ended July 31, 2023, the Fund did not have a liability for any unrecognized tax benefits in the accompanying
financial statements. The Fund recognizes the interest and penalties, if any, related to the unrecognized tax benefits as income
tax expense in the Statement of Operations. Management has analyzed the Fund’s tax positions taken on federal income tax
returns for all open tax periods and has concluded that no provision for federal income tax is required in the Fund’s financial
statements. During the year, the Fund did not incur any interest or penalties. The Fund files U.S. federal, state, and local tax
returns as required. The Fund’s tax returns are subject to examination by the relevant tax authorities until expiration
of the applicable statute of limitations which is generally three years after the filing of the tax return.
10.
INDEMNIFICATIONS
Under
the Fund’s organizational documents, its officers and Directors are indemnified against certain liabilities arising out
of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts
with service providers that may contain general indemnification clauses. The Fund’s maximum exposure under those arrangements
is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.
RiverNorth
Opportunities Fund, Inc. |
Notes to Financial Statements |
July 31, 2023
11.
SUBSEQUENT EVENTS
Subsequent
to July 31, 2023, the Fund paid the following distributions:
Ex-Date |
Record
Date |
Payable
Date |
Rate
(per share) |
August 14, 2023 |
August 15, 2023 |
August 31, 2023 |
$0.1278 |
September 14, 2023 |
September 15, 2023 |
September 29, 2023 |
$0.1278 |
Annual Report | July 31,
2023 |
43 |
RiverNorth Opportunities
Fund, Inc. |
Report
of Independent Registered Public Accounting Firm |
To
the Shareholders and Board of Directors of
RiverNorth
Opportunities Fund, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying statement of assets and liabilities, including the statement of investments, of RiverNorth Opportunities
Fund, Inc. (the “Fund”) as of July 31, 2023, the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for
each of the five years in the period then ended (collectively referred to as the “financial statements”). In our opinion,
the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2023, the
results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally
accepted in the United States of America.
Basis
for Opinion
These
financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the
Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or
fraud.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as
of July 31, 2023, by correspondence with the custodian, brokers, and transfer agents; when replies were not received from brokers,
we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.
We
have served as the auditor of one or more of RiverNorth Capital Management, LLC’s investment companies since 2006.
![](https://www.sec.gov/Archives/edgar/data/1501072/000139834423019035/fp0085332-1_04.jpg)
COHEN
& COMPANY, LTD.
Cleveland,
Ohio
September
28, 2023
RiverNorth Opportunities
Fund, Inc. |
Dividend Reinvestment Plan |
|
July
31, 2023 (Unaudited) |
RiverNorth
Opportunities Fund, Inc. (the “Fund”) has a dividend reinvestment plan commonly referred to as an “opt-out”
plan. Unless the registered owner of the Fund’s shares of common stock (the “Common Shares”) elects to receive
cash by contacting DST Systems, Inc. (the "Plan Administrator"), all dividends and distributions declared on Common
Shares will be automatically reinvested by the Plan Administrator for shareholders in the Fund’s Automatic Dividend Reinvestment
Plan (the “Plan”), in additional Common Shares. Common Shareholders who elect not to participate in the Plan will
receive all dividends and other distributions in cash paid by check mailed directly to the shareholder of record (or, if the Common
Shares are held in street or other nominee name, then to such nominee) by the Plan Administrator as dividend disbursing agent.
Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received
and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective
with respect to any subsequently declared dividend or other distribution. Such notice will be effective with respect to a particular
dividend or other distribution (together, a “Dividend”). Some brokers may automatically elect to receive cash on behalf
of Common Shareholders and may re-invest that cash in additional Common Shares.
Whenever
the Fund declares a Dividend payable in cash, non-participants in the Plan will receive cash and participants in the Plan will
receive the equivalent in Common Shares. The Common Shares will be acquired by the Plan Administrator for the participants’
accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized Common
Shares from the Fund (“Newly Issued Common Shares”) or (ii) by purchase of outstanding Common Shares on the open market
(“Open-Market Purchases”) on the New York Stock Exchange (“NYSE”) or elsewhere. If, on the payment date
for any Dividend, the closing market price plus estimated brokerage commissions per Common Share is equal to or greater than the
net asset value per Common Share, the Plan Administrator will invest the Dividend amount in Newly Issued Common Shares on behalf
of the participants. The number of Newly Issued Common Shares to be credited to each participant’s account will be determined
by dividing the dollar amount of the Dividend by the Fund’s net asset value per Common Share on the payment date. If, on
the payment date for any Dividend, the net asset value per Common Share is greater than the closing market value plus estimated
brokerage commissions (i.e., the Fund’s Common Shares are trading at a discount), the Plan Administrator will invest the
Dividend amount in Common Shares acquired on behalf of the participants in Open-Market Purchases.
In
the event of a market discount on the payment date for any Dividend, the Plan Administrator will have until the last business
day before the next date on which the Common Shares trade on an “ex-dividend” basis or 30 days after the payment
date for such Dividend, whichever is sooner (the “Last Purchase Date”), to invest the Dividend amount in Common Shares
acquired in Open-Market Purchases. It is contemplated that the Fund will pay monthly income Dividends. If, before the Plan Administrator
has completed its Open-Market Purchases, the market price per Common Share exceeds the net asset value per Common Share, the average
per Common Share purchase price paid by the Plan Administrator may exceed the net asset value of the Common Shares, resulting
in the acquisition of fewer Common Shares than if the Dividend had been paid in Newly Issued Common Shares on the Dividend payment
date. Because of the foregoing difficulty with respect to Open-Market Purchases, the Plan provides that if the Plan Administrator
is unable to invest the full Dividend amount in Open-Market Purchases during the purchase period or if the market discount shifts
to a market premium during the purchase period, the Plan Administrator may cease making Open-Market Purchases and may invest the
uninvested portion of the Dividend amount in Newly Issued
Common Shares at the net asset value per Common Share at the close of business on the Last Purchase Date.
Annual Report | July 31,
2023 |
45 |
RiverNorth Opportunities
Fund, Inc. |
Dividend Reinvestment Plan |
|
July
31, 2023 (Unaudited) |
The
Plan Administrator maintains all shareholders’ accounts in the Plan and furnishes written confirmation of all transactions
in the accounts, including information needed by shareholders for tax records. Common Shares in the account of each Plan participant
will be held by the Plan Administrator on behalf of the Plan participant, and each shareholder proxy will include those shares
purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants
and vote proxies for shares held under the Plan in accordance with the instructions of the participants.
Beneficial
owners of Common Shares who hold their Common Shares in the name of a broker or nominee should contact the broker or nominee to
determine whether and how they may participate in the Plan. In the case of Common Shareholders such as banks, brokers or nominees
which hold shares for others who are the beneficial owners, the Plan Administrator will administer the Plan on the basis of the
number of Common Shares certified from time to time by the record shareholder’s name and held for the account of beneficial
owners who participate in the Plan.
There
will be no brokerage charges with respect to Common Shares issued directly by the Fund. However, each participant will pay a pro
rata share of brokerage commissions incurred in connection with Open-Market Purchases. The automatic reinvestment of Dividends
will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such
Dividends. Participants that request a sale of Common Shares through the Plan Administrator are subject to brokerage commissions.
The
Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases
in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants.
All
correspondence or questions concerning the Plan should be directed to the Plan Administrator at Mail Stop: RiverNorth Opp, 430
West 7th Street, Kansas City, MO 64105-1407.
RiverNorth Opportunities
Fund, Inc. |
Additional Information |
|
July
31, 2023 (Unaudited) |
PORTFOLIO
HOLDINGS
The
Fund files a complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for
the first and third quarters of each fiscal year on Form N-PORT within 60 days after the end of the period. Copies of the Fund’s
Form N-PORT are available without a charge, upon request, by contacting the Fund at 1-(844)-569-4750 and on the SEC’s website
at http://www.sec.gov.
PROXY
VOTING
A
description of the Fund’s proxy voting policies and procedures is available (1) without charge, upon request, by calling
1-(844)-569-4750, (2) on the Fund’s website located at http://www.rivernorthcef.com, or (3) on the SEC’s website at
http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the twelve-month
period ended June 30th is available on the SEC’s website at http://www.sec.gov.
UNAUDITED
TAX INFORMATION
The
Fund designated the following for federal income tax purposes for the year ended July 31, 2023:
|
Foreign
Taxes Paid |
Foreign
Source Income |
RiverNorth Opportunities Fund |
$0 |
$0 |
|
Tax-Exempt
Percentage |
RiverNorth Opportunities Fund |
0.00% |
Of
the distributions paid by the Fund from ordinary income for the calendar year ended December 31, 2022, the following percentages
met the requirements to be treated as qualifying for the corporate dividends received deduction and qualified dividend income:
|
Dividend
Received Deduction |
Qualified
Dividend Income |
RiverNorth Opportunities Fund |
2.54% |
5.80% |
In
early 2023, if applicable, shareholders of record received this information for the distributions paid to them by the Funds during
the calendar year 2022 via Form 1099. The Fund will notify shareholders in early 2024 of amounts paid to them by the Fund, if
any, during the calendar year 2023.
Pursuant
to Section 852(b)(3) of the Internal Revenue Code, RiverNorth Opportunities Fund designated $0 as long term capital gain dividends.
Annual Report | July 31,
2023 |
47 |
RiverNorth
Opportunities Fund, Inc. |
Expense Example |
July 31, 2023 (Unaudited)
The
following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common
Shares would bear, directly or indirectly. The table is based on the capital structure of the Fund as of July 31, 2023.
The
table shows Fund expenses as a percentage of net assets attributable to Common Shares. The following table should not be considered
a representation of the Fund’s future expenses. Actual expenses may be greater or less than those shown below.
Shareholder
Transaction Expenses |
As
a Percentage of Offering Price |
Sales Load(1) |
—% |
Expenses Borne by Common Stockholders of the
Fund(1) |
—% |
Dividend Reinvestment Plan Fees |
None(2) |
Shareholder
Transaction Expenses |
As
a Percentage of Net Assets Attributable to Common Shares (1)(6) |
Management Fee(3) |
1.73% |
Dividend and Interest Expense on Short Sales(4) |
0.18% |
Interest Expense on borrowings(4) |
0.00% |
Other Expenses(4) |
0.18% |
Acquired Fund Fees and Expenses(5) |
1.25% |
Total Annual Expenses |
3.34% |
Example(6)
The
purpose of the following table is to help a holder of Common Shares understand the fees and expenses that such holder would bear
directly or indirectly. The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares,
assuming (1) that the Fund incurs total annual expenses of 3.34% of its net assets in years 1 through 10 and (2) a 5% annual return.
|
1
year |
3
years |
5
years |
10
years |
Total Expenses Incurred |
$34 |
$103 |
$174 |
$363 |
The
example should not be considered a representation of future expenses. Actual expenses may be greater or less than those assumed.
RiverNorth
Opportunities Fund, Inc. |
Expense Example |
July 31, 2023 (Unaudited)
Annual Report | July 31,
2023 |
49 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
The
following information in this annual report is a summary of certain information about the Fund and changes since the Fund’s
registration statement dated January 25, 2022 (the “prior disclosure date”). This information may not reflect all
of the changes that have occurred since you purchased the Fund.
Investment
Objective
There
have been no changes in the Fund’s investment objective since the prior disclosure date that has not been approved by shareholders.
The
Fund’s investment objective is total return consisting of capital appreciation and current income.
Principal
Investment Strategies
There
have been no material changes to the Fund’s principal investment strategies since the prior disclosure date, other than
updates related to RiverNorth Capital Management, LLC (“RiverNorth” or the “Adviser”) serving as investment
adviser to the Fund effective as of October 1, 2022.
The
Fund seeks to achieve its investment objective by pursuing a tactical asset allocation strategy and opportunistically investing
under normal circumstances in closed-end funds, exchange-traded funds (“ETFs”), business development companies (“BDCs”
and collectively, “Underlying Funds”) and special purpose acquisition companies (“SPACs”). BDCs are a
type of closed-end fund that invests in small companies in the initial stages of their development and are similar to venture
capital funds. SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities.
The Adviser has the flexibility to change the Fund’s asset allocation based on its ongoing analysis of the equity, fixed
income and alternative asset markets. The Adviser considers various quantitative and qualitative factors relating to the domestic
and foreign securities markets and economies when making asset allocation and security selection decisions. While the Adviser
continuously evaluates these factors, material shifts in the Fund’s asset class exposures will typically take place over
longer periods of time. In addition, the Fund, in seeking to achieve its investment objective, will not take activist positions
in the Underlying Funds or SPACs.
Under
normal market conditions, the Fund will invest at least 80% of its Managed Assets in Underlying Funds and SPACs. The Fund directly,
and therefore Common Stockholders indirectly, will bear the expenses of the Underlying Funds or SPACs.
Under
normal market conditions: (i) no more than 80% of the Fund’s Managed Assets will be invested in “equity” Underlying
Funds and SPACs; (ii) no more than 60% of the Fund’s Managed Assets will be invested in “fixed income” Underlying
Funds and SPACs; (iii) no more than 30% of the Fund’s Managed Assets will be invested in “global equity” Underlying
Funds and SPACs; (iv) no more than 15% of the Fund’s Managed Assets will be invested in “emerging market equity”
Underlying Funds; (v) no more than 30% of the Fund’s Managed Assets will be invested in “high yield” (also known
as “junk bond”) and “senior loan” Underlying Funds and SPACs; (vi) no more than 15% of the Fund’s
Managed Assets will be invested in “emerging market income” Underlying Funds and SPACs; (vii) no more than 10% of
the Fund’s Managed Assets will be invested in “real estate” Underlying Funds and SPACs; and (viii) no more than
15% of the Fund’s Managed Assets will be invested in “energy master limited partnership” (“MLP”)
Underlying Funds and SPACs. Underlying Funds and SPACs
included in the 30% limitation applicable to investments in “global equity” Underlying Funds and SPACs may include
Underlying Funds and SPACs that invest a portion of their assets in emerging markets securities. The Fund will also limit its
investments in closed-end funds (including BDCs) that have been in operation for less than one year to no more than 10% of the
Fund’s Managed Assets. The Fund will not invest in inverse ETFs and leveraged ETFs. The types of Underlying Funds and SPACs
referenced in this paragraph will be categorized in accordance with the fund categories established and maintained by Morningstar,
Inc. The investment parameters stated above (and elsewhere in this report) apply only at the time of purchase. The Underlying
Funds and SPACs in which the Fund invests will not include those that are advised or subadvised by the Adviser or its affiliates.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
In
selecting closed-end funds, the Adviser opportunistically utilizes a combination of short-term and longer-term trading strategies
to seek to derive value from the discount and premium spreads associated with closed-end funds. The Fund benefits if it purchases
a closed-end fund at a discount and the discount narrows. In addition, the Fund may purchase closed-end funds at a premium if
the Adviser believes the premium will increase. The Adviser employs both a quantitative and qualitative approach in its selection
of closed-end funds and has developed proprietary screening models and trading algorithms to trade closed-end funds. The Adviser
employs the following trading strategies, among others:
Statistical
Analysis (Mean Reversion)
| ● | Using
proprietary quantitative models, the Adviser seeks to identify closed-end funds that are trading at compelling absolute and /
or relative discounts. |
| ● | The
Fund will attempt to capitalize on the perceived mispricing if the Adviser believes that the discount widening is irrational and
expects the discount to narrow to longer-term mean valuations. |
Corporate
Actions
| ● | The
Adviser will pursue investments in closed-end funds that have announced, or the Adviser believes are likely to announce, certain
corporate actions that may drive value for their shareholders. |
| ● | The
Adviser has developed trading strategies that focus on closed-end fund tender offers, rights offerings, shareholder distributions,
open-endings and liquidations. |
The
Fund will invest in other Underlying Funds and SPACs (that are not closed-end funds) to gain exposure to specific asset classes
when the Adviser believes closed-end fund discount or premium spreads are not attractive or to manage overall closed-end fund
exposure in the Fund.
An
index-based ETF is an investment company that seeks to track the performance of a particular market index. These indices include
not only broad-market indices, but more specific indices as well, including those relating to particular sectors, markets, regions
and industries. The Adviser selects ETFs based on their ability to offer specific sector and style exposure in a cost and tax
efficient manner. The Fund purchases ETF shares on the secondary market. Unlike a fund that allocates its assets
among mutual funds based on the perceived ability of the advisers to those mutual funds, the Adviser actively manages the Fund’s
portfolio among the Underlying Funds and SPACs based on the Adviser’s research and analysis of the market and the investment
merit of the Underlying Funds and SPACs themselves. In evaluating the investment merit of Underlying Funds and SPACs, the Adviser
analyzes the asset class, the portfolio manager(s) and the adviser, past performance, recent portfolio holdings and concentration
risks.
Annual Report | July 31,
2023 |
51 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
Under
normal circumstances, the Fund intends to maintain long positions in Underlying Funds and SPACs, however, may engage in short
sales for investment purposes. When the Fund engages in a short sale, it sells a security it does not own and, to complete the
sale, borrows the same security from a broker or other institution. The Fund may benefit from a short position when the shorted
security decreases in value. The Fund may also at times establish hedging positions. Hedging positions may include short sales
and derivatives, such as options and swaps (“Hedging Positions”). Under normal market conditions, no more than 30%
of the Fund’s Managed Assets will be in Hedging Positions. The Fund’s investments in derivatives will be included
under the 80% policy noted above so long as the underlying asset of such derivatives is a closed-end fund or Underlying Fund,
respectively. The Adviser intends to use Hedging Positions to lower the Fund’s volatility but they may also be used to seek
to enhance the Fund’s return. A short sale is a transaction in which the Fund sells a security that it does not own in anticipation
of a decline in the market price of the security. To complete the short sale, the Fund must arrange through a broker to borrow
the security in order to deliver it to the buyer. The Fund is obligated to replace the borrowed security by purchasing it at a
market price at or prior to the time it must be returned to the lender. The price at which the Fund is required to replace the
borrowed security may be more or less than the price at which the security was sold by the Fund. The Fund will incur a loss if
the price of the security sold short increases between the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund will realize a gain if the price of the security declines between those dates.
The
Adviser performs both a quantitative and qualitative analysis, including fundamental and technical analysis to assess the relative
risk and reward potential for each SPAC investment. Among other things, the Adviser will evaluate the management team’s
strategy, experience, deal flow, and demonstrated track record in building enterprise value. The Adviser will also evaluate the
terms of each SPAC offering, including the aggregate amount of the offering, the offering price of the securities, the equity
yield to termination, the option value of warrants, the sponsor’s interest in the SPAC, and the expected liquidity of the
SPAC’s securities. The Fund will purchase securities of SPACs in their initial public offerings and in the secondary market.
In
selecting SPAC investments, the Adviser will also utilize trading strategies and programs to seek to derive value from buying
and selling SPAC securities, including units, common shares and warrants. Under normal market conditions, the Fund intends to
purchase SPAC securities in an initial public offering and opportunistically buy and sell SPAC securities on the secondary market
prior to a SPAC’s initial business combination. The Fund does not intend to hold common shares after a SPAC’s initial
business combination has been completed other than common shares obtained temporarily through the conversion of a SPAC’s
warrants into common shares. The Fund may redeem common shares of a SPAC in exchange for the Fund’s pro rata portion of
the SPAC’s trust account.
The
Fund also may invest up to 20% of its Managed Assets in exchange-traded notes (“ETNs”), certain derivatives, such
as options and swaps, cash and cash equivalents. Such investments will not be
counted towards the Fund’s 80% policy. ETNs are debt securities whose returns are linked to a particular index.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
The
Fund may invest directly in debt securities issued by certain credit-oriented unlisted funds and BDCs (“Private Debt”)
identified by the Adviser in its due diligence process. The Adviser believes that investments in Private Debt can provide the
Fund with the opportunity to obtain more favorable terms and similar risk profiles to similar publicly traded debt investments
available. Private Debt often may be illiquid and is typically not listed on an exchange and traded less actively than similar
securities issued by publicly traded-vehicles. For certain Private Debt investments, trading may only be possible through the
assistance of the broker who originally brought the security to the market and has a relationship with the issuer. Due to the
limited trading market, independent pricing services may be unable to provide a price for Private Debt, and the fair value of
the securities may be determined in good faith under procedures approved by the Board, which typically will include the use of
one or more independent broker quotes.
In
selecting appropriate Private Debt investments for the Fund, the Adviser completes a fundamental and technical analysis of the
issuer, with a focus on reducing downside risk. As part of this analysis, the Adviser evaluates the manager’s experience
and ability based on historical track record regarding credit performance of previously originated loans and meetings with the
management team. In addition, the Adviser reviews the issuer’s investment portfolio, including the issuer’s asset
diversification across type and sector, before further evaluating the issuer’s financials to review its capital structure,
particularly details of any existing leverage and the maximum leverage permitted on any senior debt of the issuer. Once comfort
is reached regarding the issuer’s investment portfolio, manager, and capital structure, the Adviser then evaluates details
of the terms of the Private Debt opportunity, beginning with a review to ensure appropriate covenants are contained within to
limit the Fund’s downside risk across a range of scenarios (which typically will include a minimum level of subordination
requirement.) Following, the Adviser will review and weigh pricing levels on the Private Debt compared to other opportunities
in the market to assess relative value and arrive at an investment decision. Opportunities for the Fund to make investments in
Private Debt may be limited, especially those which fit the Adviser’s investment criteria.
The
Fund may attempt to enhance the return on the cash portion of its portfolio by investing in a total return swap agreement. A total
return swap agreement provides the Fund with a return based on the performance of an underlying asset, in exchange for fee payments
to a counterparty based on a specific rate. The difference in the value of these income streams is recorded daily by the Fund,
and is typically settled in cash at least monthly. If the underlying asset declines in value over the term of the swap, the Fund
would be required to pay the dollar value of that decline plus any applicable fees to the counterparty. The Fund may use its own
net asset value (“NAV”) or any other reference asset that the Adviser chooses as the underlying asset in a total return
swap. The Fund will limit the notional amount of all total return swaps in the aggregate to 15% of the Fund’s Managed Assets.
Using the Fund’s own NAV as the underlying asset in the total return swap serves to reduce cash drag (the impact of cash
on the Fund’s overall return) by replacing it with the impact of market exposure based upon the Fund’s own investment
holdings. This type of total return swap would provide the Fund with a return based on its NAV. Like any total return swap, the
Fund would be subject to counterparty risk and the risk that its own NAV declines in value.
Annual Report | July 31,
2023 |
53 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
The
Fund generally seeks to hold securities for the long term, but may liquidate positions in order to change the Fund’s asset
allocation or to generate cash to invest in more attractive opportunities, which may result in a larger portion of any net gains
being realized as short-term capital gains. In addition, a negative change in the fundamental or qualitative characteristics of
the issuer may cause the Adviser to sell a security. Finally, the Adviser may sell a security when its price approaches, meets
or exceeds the Adviser’s target price. For instance, the Adviser may sell shares of a closed-end fund when it is no longer
selling at a discount. This may result in a high rate of portfolio turnover.
The
Fund’s investment objective is non-fundamental and may be changed by the Board without Common Stockholder approval. Common
Stockholders will, however, receive at least 60 days’ prior notice of any change in this investment objective.
Use
of Leverage
This
section has been updated since the prior disclosure date to reflect certain non-material updates.
The
Fund may borrow money and/or issue preferred stock, notes or debt securities for investment purposes. These practices are known
as leveraging. The Fund may utilize leverage to purchase portfolio securities and for portfolio or cash management purposes. The
Fund also may borrow money as a temporary measure for extraordinary or emergency purposes, including settlement of securities
transactions, which otherwise might require untimely dispositions of the Fund’s portfolio securities. The Fund currently
anticipates that if employed, leverage will primarily be obtained through the use of bank borrowings or other similar term loans.
The Underlying Funds and SPACs that the Fund invests in may also use leverage. The Fund may be subject to certain restrictions
on investments imposed by lenders or by one or more rating agencies that may issue ratings for any senior securities issued by
the Fund. Borrowing covenants or rating agency guidelines may impose asset coverage or Fund composition requirements that are
more stringent than those imposed on the Fund by the Investment Company Act of 1940, as amended (the “1940 Act”).
The
provisions of the 1940 Act further provide that the Fund may borrow or issue notes or debt securities in an amount up to 33 1/3%
of its total assets or may issue preferred shares in an amount up to 50% of the Fund’s total assets (including the proceeds
from leverage).
The
Fund may enter into derivatives or other transactions (e.g., total return swaps) that may provide leverage (other than through
borrowings or the issuance of preferred shares). The Fund also invests in reverse repurchase agreements, total return swaps and
derivatives or other transactions with leverage embedded in them in a limited manner or subject to a limit on leverage risk calculated
based on value-at-risk, as required by Rule 18f-4 under the 1940 Act. These transactions will not cause the Fund to pay higher
advisory or administration fee rates than it would pay in the absence of such transactions.
However,
these transactions will entail additional expenses (e.g., transaction costs) which will be borne by the Fund. These types of transactions
have the potential to increase returns to Common Stockholders, but they also involve additional risks. This additional leverage
will increase the volatility of the Fund’s investment portfolio and could result in larger losses than if the transactions
were not entered into. However, to the extent that the Fund enters into offsetting transactions or owns positions covering its
obligations, the leveraging effect is expected to be minimized or eliminated.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
Under
the 1940 Act, the Fund is not permitted to incur indebtedness unless immediately after doing so the Fund has an asset coverage
of at least 300% of the aggregate outstanding principal balance of indebtedness (i.e., such indebtedness may not exceed 33 1/3%
of the value of the Fund’s total assets including the amount borrowed). Additionally, under the 1940 Act, the Fund may not
declare any dividend or other distribution upon any class of its shares, or purchase any such shares, unless the aggregate indebtedness
of the Fund has, at the time of the declaration of any such dividend or distribution or at the time of any such purchase, asset
coverage of at least 300% after deducting the amount of such dividend, distribution, or purchase price, as the case may be. With
respect to the asset coverage for preferred stock, under the 1940 Act, the Fund is not permitted to issue preferred stock unless
immediately after such issuance the total asset value of the Fund’s portfolio is at least 200% of the liquidation value
of the outstanding preferred stock (i.e., such liquidation value may not exceed 50% of the Fund’s Managed Assets). In addition,
the Fund is not permitted to declare any cash dividend or other distribution on its Common Shares unless, at the time of such
declaration, the NAV of the Fund’s portfolio (determined after deducting the amount of such dividend or other distribution)
is at least 200% of such liquidation value of the preferred stock. If preferred stock is issued, the Fund intends, to the extent
possible, to purchase or redeem shares, from time to time, to maintain coverage of any preferred stock of at least 200%. Normally,
holders of Common Shares will elect the directors of the Fund except that the holders of any preferred stock will elect two directors.
In the event the Fund failed to pay dividends on its preferred stock for two years, holders of preferred stock would be entitled
to elect a majority of the directors until the dividends are paid.
Effects
of Leverage
The
following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on total
return on common shares, assuming investment portfolio total returns (comprised of income, net expenses and changes in the value
of investments held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects the Fund's continued
use of Preferred Shares as of July 31, 2023 as a percentage of total managed assets (including assets attributable to such leverage),
and the annual return that the Fund's portfolio must experience (net of expenses) in order to cover such costs. These assumed
investment portfolio returns are hypothetical figures and are not necessarily indicative of what the Fund’s investment portfolio
returns will be. In other words, the Fund’s actual returns may be greater or less than those appearing in the table below.
The table further reflects the use of leverage representing approximately 27.02% of the Fund’s Managed Assets and estimated
leverage costs of 6.00%.
Assumed Portfolio Return |
-10.00% |
-5.00% |
0.00% |
5.00% |
10.00% |
Common Share Total Return |
-15.92% |
-9.07% |
-2.22% |
4.63% |
11.48% |
Total
return is composed of two elements—the dividends on common shares paid by the Fund (the amount of which is largely determined
by the Fund’s net investment income after paying the cost of leverage) and realized and unrealized gains or losses on the
value of the securities the Fund owns. As the table shows, leverage generally increases the return to common shareholders when
portfolio return is positive or greater than the costs of leverage and decreases return when the portfolio return is negative
or less than the costs of leverage.
Annual Report | July 31,
2023 |
55 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
|
July 31, 2023 (Unaudited) |
During
the time in which the Fund is using leverage, the amount of the fees paid to the Adviser for investment management services is
higher than if the Fund did not use leverage because the fees paid are calculated based on the Fund’s Managed Assets. This
may create a conflict of interest between the Adviser, on the one hand, and common shareholders, on the other. Also, because the
leverage costs are borne by the Fund at a specified interest rate, only the Fund’s common shareholders bear the cost of
the Fund’s management fees and other expenses. There can be no assurance that a leveraging strategy will be successful during
any period in which it is employed.
Market
and Net Asset Value Information
The
Fund’s Common Shares are listed on the NYSE under the symbol “RIV.” The Fund’s Common Shares commenced
trading on the NYSE in December 2015.
The
Fund’s Common Shares have traded both at a premium and a discount to NAV. The Fund cannot predict whether the Common Shares
will trade in the future at a premium or discount to NAV. The provisions of the 1940 Act generally require that the public offering
price of Common Shares (less any underwriting commissions and discounts) must equal or exceed the NAV per share of a company’s
common stock (calculated within 48 hours of pricing). The Fund’s issuance of Common Shares may have an adverse effect on
prices in the secondary market for the Fund’s Common Shares by increasing the number of Common Shares available, which may
put downward pressure on the market price for the Fund’s Common Shares. Shares of common stock of closed-end investment
companies frequently trade at a discount from NAV.
The
following table shows, for each fiscal quarter since the quarter ended January 31, 2021: (i) high and low NAVs per share of common
stock, (ii) the high and low sale prices per share of common stock, as reported in the consolidated transaction reporting system,
and (iii) the percentage by which the Common Shares traded at a premium over, or discount from, the high and low NAVs per shares
of common stock. The Fund’s NAV per Common Share is determined on a daily basis.
Quarter
Ended |
Market
Price |
NAV
at |
Market
Premium (Discount) to NAV at |
|
|
High |
Low |
Market High |
Market Low |
Market High |
Market Low |
2023 |
July 31 |
$11.51 |
$10.96 |
$12.32 |
$12.23 |
-6.57% |
-10.38% |
|
April 30 |
$12.50 |
$10.89 |
$12.82 |
$12.24 |
-2.50% |
-11.03% |
|
January 31 |
$13.29 |
$11.74 |
$12.73 |
$12.30 |
4.40% |
-4.55% |
2022 |
October 31 |
$15.20 |
$11.85 |
$13.82 |
$12.29 |
9.99% |
-3.58% |
|
July 31 |
$15.10 |
$12.56 |
$14.06 |
$13.01 |
7.40% |
-3.46% |
|
April 30 |
$16.68 |
$14.78 |
$15.87 |
$15.31 |
5.10% |
-3.46% |
|
January 31 |
$17.69 |
$14.86 |
$17.09 |
$15.64 |
3.51% |
-4.99% |
2021 |
October 31 |
$18.75 |
$16.71 |
$17.12 |
$16.87 |
9.52% |
-0.95% |
|
July 31 |
$18.75 |
$16.75 |
$17.24 |
$17.02 |
8.76% |
-1.59% |
|
April 30 |
$17.88 |
$16.71 |
$17.23 |
$16.61 |
3.77% |
0.60% |
|
January 31 |
$17.07 |
$13.81 |
$16.48 |
$14.53 |
3.58% |
-4.96% |
RiverNorth Opportunities Fund, Inc. |
Summary of Updated Information
Regarding the Fund |
|
July 31, 2023 (Unaudited) |
Risks
Investing
in the Fund involves certain risks relating to its structure and investment objective. You should carefully consider these risk
factors, together with all of the other information included in this report, before deciding whether to make an investment in
the Fund. An investment in the Fund may not be appropriate for all investors, and an investment in the common shares of the Fund
should not be considered a complete investment program.
The risks
set forth below are not the only risks of the Fund, and the Fund may face other risks that have not yet been identified, which
are not currently deemed material or which are not yet predictable. If any of the following risks occur, the Fund’s financial
condition and results of operations could be materially adversely affected. In such case, the Fund’s NAV and the trading
price of its securities could decline, and you may lose all or part of your investment.
Certain
risk factors included below have been updated since the prior disclosure date to reflect certain non-material updates.
Structural Risks:
Not a Complete Investment
Program
The Fund
is intended for investors seeking capital appreciation and current income over the long-term, and is not intended to be a short-term
trading vehicle. An investment in the Common Shares of the Fund should not be considered a complete investment program. Each investor
should take into account the Fund’s investment objective and other characteristics as well as the investor’s other
investments when considering an investment in the Common Shares. An investment in the Fund may not be appropriate for all investors.
Risks Associated with Offerings
of Additional Common Shares
The voting
power of current Common Stockholders will be diluted to the extent that current Common Stockholders do not purchase Common Shares
in any future offerings of Common Shares or do not purchase sufficient Common Shares to maintain their percentage interest. If
the Fund is unable to invest the proceeds of such offering as intended, the Fund’s per Common Share distribution may decrease
and the Fund may not participate in market advances to the same extent as if such proceeds were fully invested as planned. If
the Fund sells Common Shares at a price below NAV pursuant to the consent of Common Stockholders, shareholders will experience
a dilution of the aggregate NAV per Common Share because the sale price will be less than the Fund’s then-current NAV per
Common Share. Similarly, were the expenses of the offering to exceed the amount by which the sale price exceeded the Fund’s
then current NAV per Common Share, shareholders would experience a dilution of the aggregate NAV per Common Share. This dilution
will be experienced by all shareholders, irrespective of whether they purchase Common Shares in any such offering.
Annual Report | July 31, 2023 |
57 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Additional
Risks of Rights
There
are additional risks associated with an offering of subscription rights to purchase Common Shares (“Rights”). Shareholders
who do not exercise their Rights may, at the completion of such an offering, own a smaller proportional interest in the Fund than
if they exercised their Rights. As a result of such an offering, a shareholder may experience dilution in NAV per share if the
subscription price per share is below the NAV per share on the expiration date. If the subscription price per share is below the
NAV per share of the Fund’s Common Shares on the expiration date, a shareholder will experience an immediate dilution of
the aggregate NAV of such shareholder’s Common Shares if the shareholder does not participate in such an offering and the
shareholder will experience a reduction in the NAV per share of such shareholder’s Common Shares whether or not the shareholder
participates in such an offering. Such a reduction in NAV per share may have the effect of reducing market price of the Common
Share. The Fund cannot state precisely the extent of this dilution (if any) if the shareholder does not exercise such shareholder’s
Rights because the Fund does not know what the NAV per share will be when the offer expires or what proportion of the Rights will
be exercised. If the subscription price is substantially less than the then current NAV per Common Share at the expiration of
a rights offering, such dilution could be substantial. Any such dilution or accretion will depend upon whether (i) such shareholders
participate in the rights offering and (ii) the Fund’s NAV per Common Share is above or below the subscription price on
the expiration date of the rights offering. In addition to the economic dilution described above, if a Common Stockholder does
not exercise all of their rights, the Common Stockholders will incur voting dilution as a result of this rights offering. This
voting dilution will occur because the Common Stockholders will own a smaller proportionate interest in the Fund after the rights
offering than prior to the rights offering. There is a risk that changes in market conditions may result in the underlying Common
Shares purchasable upon exercise of the subscription rights being less attractive to investors at the conclusion of the subscription
period. This may reduce or eliminate the value of the subscription rights. If investors exercise only a portion of the rights,
the number of Common Shares issued may be reduced, and the Common Shares may trade at less favorable prices than larger offerings
for similar securities. Subscription rights issued by the Fund may be transferable or non-transferable rights. In a non-transferable
rights offering, Common Stockholders who do not wish to exercise their rights will be unable to sell their rights. In a transferrable
rights offering, the Fund will use its best efforts to ensure an adequate trading market for the rights; however, investors may
find that there is no market to sell rights they do not wish to exercise.
Leverage
Risks
The
Fund may borrow money, or issue debt or preferred stock. Since the holders of Common Shares pay all expenses related to the issuance
of debt or use of leverage, the use of leverage through borrowing of money, issuance of debt securities or the issuance of preferred
stock for investment purposes creates risks for the holders of Common Shares. Leverage is a speculative technique that exposes
the Fund to greater risk and increased costs than if it were not implemented. Increases and decreases in the value of the Fund’s
portfolio will be magnified when the Fund uses leverage. As a result, leverage may cause greater changes in the Fund’s NAV.
The Fund will also have to pay interest on its borrowings or dividends on preferred stock, if any, which may reduce the Fund’s
return. The leverage costs may be greater than the Fund’s return on the underlying investment. The Fund’s leveraging
strategy may not be successful.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
If
the Fund utilizes leverage in the form of borrowing, it anticipates that the money borrowed for investment purposes will incur
interest based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides
a higher rate of return, net of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause
the holders of Common Shares to receive a higher current rate of return than if the Fund were not leveraged. If, however, long-term
and/or short-term rates rise, the interest rate on borrowed money could exceed the rate of return on securities held by the Fund,
reducing return to the holders of Common Shares.
There
is no assurance that a leveraging strategy will be successful. Leverage involves risks and special considerations for Common Stockholders,
including:
| • | the
likelihood of greater volatility of NAV, market price and dividend rate of the Common
Shares than a comparable portfolio without leverage; |
| • | the
risk that fluctuations in interest rates on borrowings or on short-term debt or in the
interest or dividend rates on any debt securities or preferred shares that the Fund must
pay will reduce the return to the Common Stockholders; |
| • | the
effect of leverage in a declining market, which is likely to cause a greater decline
in the NAV of the Common Shares than if the Fund were not leveraged, may result in a
greater decline in the market price of the Common Shares; |
| • | when
the Fund uses financial leverage, the investment management fees payable to the Adviser
will be higher than if the Fund did not use leverage. This may create a conflict of interest
between the Adviser, on the one hand, and the holders of Common Shares, on the other;
and |
| • | leverage
may increase operating costs, which may reduce total return. |
The
use of leverage may require the Fund to segregate assets to cover its obligations (or, if the Fund borrows money or issues preferred
shares, to maintain asset coverage in conformity with the requirements of the 1940 Act). While the segregated assets will be invested
in liquid securities, they may not be used for other operational purposes. Consequently, the use of leverage may limit the Fund’s
flexibility and may require that the Fund sell other portfolio investments to pay Fund expenses, to maintain assets in an amount
sufficient to cover the Fund’s leveraged exposure or to meet other obligations at a time when it may be disadvantageous
to sell such assets. Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements
relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments
imposed by guidelines of one or more rating agencies, which may issue ratings for the short-term debt securities or preferred
shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent
than those imposed by the 1940 Act. The Adviser does not believe that these covenants or guidelines will impede it from managing
the Fund’s portfolio in accordance with the Fund’s investment objective and policies if the Fund were to utilize leverage.
Leverage
risk would also apply to the Fund’s investments in Underlying Funds and SPACs to the extent an Underlying Fund or SPAC uses
leverage.
Annual Report | July 31,
2023 |
59 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Market
Discount
The
stock of closed-end management investment companies often trade at a discount from their NAV, and the Fund’s Common Shares
may likewise trade at a discount from NAV. The trading price of the Fund’s Common Shares may be less than the NAV. The returns
earned by Common Stockholders who sell their Common Shares below NAV will be reduced. The Fund’s Common Shares are currently
sold at a premium to NAV. This risk would also apply to the Fund’s investments in closed-end funds.
Anti-Takeover
Provisions
Maryland
law and the Fund’s Charter and Bylaws include provisions that could limit the ability of other entities or persons to acquire
control of the Fund or to convert the Fund to open-end status. These provisions could deprive the holders of Common Shares of
opportunities to sell their Common Shares at a premium over the then current market price of the Common Shares or at NAV. This
risk would also apply to many of the Fund’s investments in closed-end funds.
Investment-Related
Risks:
The
risks listed below are in alphabetical order. With the exception of Underlying Fund risk (and except as otherwise noted below),
the following risks apply to the direct investments the Fund may make, and generally apply to the Fund’s investments in
Underlying Funds and SPACs. That said, each risk described below may not apply to each Underlying Fund or SPAC investment. Similarly,
an Underlying Fund may be subject to additional or different risks than those described below.
Asset
Allocation Risks
To
the extent that the Adviser’s asset allocation strategy may fail to produce the intended result, the Fund’s return
may suffer. Additionally, the active asset allocation style of the Fund leads to changing allocations over time and represents
a risk to investors who target fixed asset allocations.
Convertible
Securities Risks
The
market value of convertible securities tends to fall when prevailing interest rates rise. The value of convertible securities
also tends to change whenever the market value of the underlying common or preferred stock fluctuates. Convertible securities
tend to be of lower credit quality.
Defensive
Measures
The
Fund may invest up to 100% of its assets in cash, cash equivalents and short-term investments as a defensive measure in response
to adverse market conditions or opportunistically at the discretion of the Adviser. During these periods or during periods when
an Underlying Fund invests defensively, the Fund may not be pursuing its investment objective.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Derivatives
Risks
The
Fund and the Underlying Funds may enter into derivatives transactions. Derivative transactions involve investment techniques and
risks different from those associated with investments in Underlying Funds. Generally, a derivative is a financial contract the
value of which depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and may relate to
individual debt or equity instruments, interest rates, currencies or currency exchange rates, commodities, related indexes, and
other assets. Derivatives can be volatile and involve various types and degrees of risk, depending upon the characteristics of
a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that
a small investment in a derivative could have a large potential impact on the performance of a fund. A fund could experience a
loss if derivatives do not perform as anticipated, if they are not correlated with the performance of other investments which
they are used to hedge or if the fund is unable to liquidate a position because of an illiquid secondary market. The market for
many derivatives is, or can suddenly become, illiquid. Changes in liquidity may result in significant, rapid and unpredictable
changes in the prices of derivatives. When used for speculative purposes, derivatives will produce enhanced investment exposure,
which will magnify gains and losses. Certain derivatives transactions may give rise to a form of leverage. The use of leverage
may cause a fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations. Leverage
may cause a fund to be more volatile than if it had not been leveraged. This is because leverage tends to exaggerate the effect
of any increase or decrease in the value of the fund’s portfolio securities. Further, using derivatives may include the
risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly, or at all, with
the value of the assets, reference rates or indexes they are designed to closely track. The Fund also will be subject to credit
risk with respect to the counterparties to the derivatives contracts purchased by the Fund. If a counterparty becomes bankrupt
or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience
significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding.
The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.
On
October 28, 2020, the Securities and Exchange Commission (“SEC”) adopted Rule 18f-4 under the 1940 Act relating to
a registered investment company’s use of derivatives and related instruments. Rule 18f-4 prescribes specific value-at-risk
leverage limits for certain derivatives users and requires certain derivatives users to adopt and implement a derivatives risk
management program (including the appointment of a derivatives risk manager and the implementation of certain testing requirements),
and prescribes reporting requirements in respect of derivatives. Subject to certain conditions, if a fund qualifies as a “limited
derivatives user,” as defined in Rule 18f-4, it is not subject to the full requirements of Rule 18f-4. In connection with
the adoption of Rule 18f-4, the SEC rescinded certain of its prior guidance regarding asset segregation and coverage requirements
in respect of derivatives transactions and related instruments. With respect to reverse repurchase agreements or other similar
financing transactions in particular, Rule 18f-4 permits a fund to enter into such transactions if the fund either (i) complies
with the asset coverage requirements of Section 18 of the 1940 Act, and combines the aggregate amount of indebtedness associated
with all similar financing with the aggregate amount of any other senior securities representing indebtedness when calculating
the relevant asset coverage ratio, or (ii) treats all similar financing transactions as derivatives transactions for all purposes
under Rule 18f-4. The Fund was required to comply with Rule 18f-4 beginning August 19, 2022 and has adopted procedures for investing
in derivatives and other transactions in compliance with Rule 18f-4. Disclosure regarding Rule 18f-4 under the 1940 Act has been
added since the prior disclosure date.
Annual Report | July 31,
2023 |
61 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Defaulted
and Distressed Securities Risks
The
Underlying Funds may invest directly in defaulted and distressed securities. Legal difficulties and negotiations with creditors
and other claimants are common when dealing with defaulted or distressed companies. Defaulted or distressed companies may be insolvent
or in bankruptcy. In the event of a default, an Underlying Fund may incur additional expenses to seek recovery. The repayment
of defaulted bonds is subject to significant uncertainties, and in some cases, there may be no recovery of repayment. Defaulted
bonds might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest
or other payments. Because of the relative illiquidity of defaulted or distressed debt and equity securities, short sales are
difficult, and most Underlying Funds primarily maintain long positions. Some relative value trades are possible, where an investor
sells short one class of a defaulted or distressed company’s capital structure and purchases another. With distressed investing,
often there is a time lag between when an Underlying Fund makes an investment and when the Underlying Fund realizes the value
of the investment. In addition, an Underlying Fund may incur legal and other monitoring costs in protecting the value of the Underlying
Fund’s claims.
Equity
Securities Risks
While
equity securities have historically generated higher average returns than fixed income securities, equity securities have also
experienced significantly more volatility in those returns. An adverse event, such as an unfavorable earnings report, may depress
the value of an issuer’s equity securities held by an Underlying Fund. Equity security prices fluctuate for several reasons,
including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant
stock market, or when political or economic events affecting the issuers occur. The value of a particular equity security may
fall in value. The prices of stocks change in response to many factors, including the historical and prospective earnings of the
issuer, the value of its assets, management decisions, decreased demand for an issuer’s products or services, increased
production costs, general economic conditions, interest rates, currency exchange rates, investor perceptions and market liquidity.
The value of an Underlying Fund’s shares will go up and down due to movement in the collective returns of the individual
securities held by the Underlying Fund. Common stocks are subordinate to preferred stocks and debt in a company’s capital
structure, and if a company is liquidated, the claims of secured and unsecured creditors and owners of preferred stocks take precedence
over the claims of those who own Common Shares. In addition, equity security prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase.
Exchange-Traded
Note Risks
The
Fund and the Underlying Funds may invest in exchange-traded notes (“ETNs”), which are notes representing unsecured
debt issued by an underwriting bank. ETNs are typically linked to the performance of an index plus a specified rate of interest
that could be earned on cash collateral. The value of an ETN may be influenced by time to maturity, level of supply and demand
for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that affect the referenced index. ETNs typically
mature 30 years from the date of issue. The issuer’s credit rating will be investment grade at the time of investment, however,
the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect
for any given time period. If a rating agency lowers the issuer’s credit rating, the value of the ETN will decline and a
lower credit rating reflects a greater risk that the issuer will default on its obligation. When a fund invests in ETNs, it will
bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount
of return on investment at maturity or upon redemption.
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
There
may be restrictions on a fund’s right to liquidate its investment in an ETN prior to maturity (for example, a fund may only
be able to offer its ETN for repurchase by the issuer on a weekly basis), since ETNs are meant to be held until maturity. A fund’s
decision to sell its ETN holdings may be limited by the availability of a secondary market.
Fixed
Income Securities Risks
The
Underlying Funds and the Fund may invest in fixed income securities. Fixed income securities increase or decrease in value based
on changes in interest rates. If rates increase, the value of an Underlying Fund’s fixed income securities generally declines.
On the other hand, if rates fall, the value of the fixed income securities generally increases. The issuer of a fixed income security
may not be able to make interest and principal payments when due. This risk is increased in the case of issuers of high yield
securities, also known as “junk bonds.” If a U.S. Government agency or instrumentality in which an Underlying Fund
invests defaults, and the U.S. Government does not stand behind the obligation, the Underlying Fund’s share price or yield
could fall. Securities of certain U.S. Government sponsored entities are neither issued nor guaranteed by the U.S. Government.
The Underlying Funds may invest in fixed income securities of any credit quality, maturity or duration. Fixed income securities
risks include components of the following additional risks:
Credit
Risk. The issuer of a fixed income security may not be able to make interest and principal payments when due. Generally, the
lower the credit rating of a security, the greater the risk that the issuer will default on its obligation, which could result
in a loss to a fund. The Underlying Funds may invest in securities that are rated in the lowest investment grade category. Issuers
of these securities are more vulnerable to changes in economic conditions than issuers of higher grade securities.
High
Yield Securities Risk. The Underlying Funds may invest in high yield securities, also known as “junk bonds.” High
yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. High yield securities
are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with
the terms of the obligation. The market for high yield securities is generally less active than the market for higher quality
securities. This may limit the ability of a fund to sell high yield securities at the price at which it is being valued for purposes
of calculating NAV.
U.S.
Government Securities Risk. The Underlying Funds may invest in U.S. Government securities. The U.S. Government’s guarantee
of ultimate payment of principal and timely payment of interest on certain U.S. Government securities owned by an Underlying Fund
does not imply that the Underlying Fund’s shares are guaranteed or that the price of the Underlying Fund’s shares
will not fluctuate. In addition, securities issued by Freddie Mac, Fannie Mae and Federal Home Loan Banks are not obligations
of, or insured by, the U.S. Government. If a U.S. Government agency or instrumentality in which an Underlying Fund invests defaults
and the U.S. Government does not stand behind the obligation, the Fund’s NAV could fall.
Annual Report | July 31,
2023 |
63 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Interest
Rate Risk. An Underlying Fund’s NAV and total return will vary in response to changes in interest rates. If rates increase,
the value of an Underlying Fund’s investments generally will decline, as will the Underlying Fund’s NAV. In typical
interest rate environments, the prices of longer-term fixed income securities generally fluctuate more than the prices of shorter-term
fixed income securities as interest rates change.
Interest
rates in the United States and many other countries have risen in recent periods and may continue to rise in the future. Additionally,
as a result of increasing interest rates, reserves held by banks and other financial institutions in bonds and other debt securities
could face a significant decline in value relative to deposits and liabilities, which coupled with general economic headwinds
resulting from a changing interest rate environment, creates liquidity pressures at such institutions, as evidenced by the bank
run on the Silicon Valley Bank Financial Group (“SVB”) causing it to be placed into receivership. As a result, certain
sectors of the credit markets could experience significant declines in liquidity, and it is possible that the Fund (or an Underlying
Fund) will not be able to manage this risk effectively. It is yet to be determined how the bank run on SVB will fully impact the
overall performance of the Fund or an Underlying Fund and how similar events may affect the ability of the Fund or an Underlying
Fund to execute its investment strategy.
Sovereign
Obligation Risk. The Underlying Funds may invest in sovereign (i.e., foreign government) debt obligations. Investment in sovereign
debt obligations involves special risks not present in corporate debt obligations. The issuer of the sovereign debt or the governmental
authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the
Underlying Funds may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices
of sovereign debt may be more volatile than prices of U.S. debt obligations. In the past, certain emerging markets have encountered
difficulties in servicing their debt obligations, withheld payments of principal and interest, and declared moratoria on the payment
of principal and interest on their sovereign debts. See also “Foreign Investing Risks” below.
Foreign
Investing Risks
The
Fund and the Underlying Funds may invest in foreign securities. Investments in foreign securities may be affected by currency
controls and exchange rates; different accounting, auditing, financial reporting, and legal standards and practices; expropriation;
changes in tax policy; social, political and economic instability; greater market volatility; differing securities market structures;
higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions
or in receiving payment of dividends. In addition, changes in government administrations or economic or monetary policies in the
United States or abroad could result in appreciation or depreciation of the Fund’s or Underlying Fund’s securities.
These risks may be heightened in connection with investments in emerging or developing countries. To the extent that a Fund or
Underlying Fund invests in depositary receipts, the Fund or Underlying Fund will be subject to many of the same risks as when
investing directly in foreign securities. The effect of recent, worldwide economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate, and some national economies continue to show profound instability, which may
in turn affect their international trading partners.
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Illiquid
Securities Risks
The
Underlying Funds may invest in illiquid securities. It may not be possible to sell or otherwise dispose of illiquid securities
both at the price and within the time period deemed desirable by a fund. Illiquid securities also may be difficult to value.
Initial
Public Offerings Risks
The
Fund and the Underlying Funds may purchase securities in initial public offerings (“IPOs”). Because securities sold
in an IPO frequently are volatile in price, the Fund or an Underlying Fund may hold IPO shares for a very short period of time.
This may increase the turnover of a fund’s portfolio and may lead to increased expenses to the fund, such as commissions
and transaction costs. By selling shares, a fund may realize taxable capital gains that it will subsequently distribute to shareholders.
Investing in IPOs has added risks because the shares are frequently volatile in price. As a result, their performance can be more
volatile and they face greater risk of business failure, which could increase the volatility of a fund’s portfolio.
The
Fund’s IPO investments may be in IPOs of Underlying Funds. There is a significant risk that the shares of closed-end funds
purchased in an IPO will trade at a price below their IPO price.
Investment
and Market Risks
An
investment in Common Shares is subject to investment risk, including the possible loss of the entire principal amount invested.
An investment in Common Shares represents an indirect investment in the Underlying Funds owned by the Fund. The value of the Underlying
Funds, like other market investments, may move up or down, sometimes rapidly and unpredictably. Overall stock market risks may
also affect the NAV of the Fund or the Underlying Funds. Factors such as domestic and foreign economic growth and market conditions,
interest rate levels and political events affect the securities markets. The Common Shares at any point in time may be worth less
than the original investment, even after taking into account any reinvestment of dividends and distributions.
Legislation,
Policy and Regulatory Risks
At
any time after the date of this annual report, legislation or additional regulations may be enacted that could negatively affect
the assets of the Fund or the issuers of such assets. Recent changes in the U.S. political landscape and changing approaches to
regulation may have a negative impact on the entities and/or securities in which the Fund or an Underlying Fund invests. Legislation
or regulation may also change the way in which the Fund or an Underlying Fund is regulated. New or amended regulations may be
imposed by the Commodity Futures Trading Commission (“CFTC”), the SEC, the Board of Governors of the Federal Reserve
System or other financial regulators, other governmental
regulatory authorities or self-regulatory organizations that supervise the financial markets that could adversely affect the Fund
or the Underlying Funds. In particular, these agencies are empowered to promulgate a variety of new rules pursuant to financial
reform legislation in the United States. There can be no assurance that future legislation, regulation or deregulation will not
have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objective. The
Fund and the Underlying Funds also may be adversely affected by changes in the enforcement or interpretation of existing statutes
and rules by these governmental regulatory authorities or self regulatory organizations.
Annual Report | July 31,
2023 |
65 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
LIBOR
Risk
Certain
of the Fund's or Underlying Funds’ investments, payment obligations and financing terms may be based on floating rates,
such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates. In July of 2017, the head of the United
Kingdom Financial Conduct Authority (“FCA”) announced a desire to phase out the use of LIBOR at the end of 2021. Most
LIBOR settings are no longer published as of December 31, 2021. Overnight and 12-month U.S. dollar LIBOR settings permanently
ceased after publication on June 30, 2021. 1-, 3-and 6-month U.S. dollar LIBOR settings will continue to be published using a
synthetic methodology until September 2024. Neither the effect of the LIBOR transition process nor its ultimate success can yet
be known. Although the transition away from LIBOR has become increasingly well-defined, any potential effects of the transition
away from LIBOR and other benchmark rates on financial markets, a fund or the financial instruments in which a fund invests can
be difficult to ascertain. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains
uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments.
Global regulators have advised market participants to cease entering into new contracts using LIBOR as a reference rate, and it
is possible that investments in LIBOR-based instruments could invite regulatory scrutiny. In addition, a liquid market for newly-issued
instruments that use a reference rate other than LIBOR still may be developing. All of the aforementioned may adversely affect
the Fund’s or an Underlying Fund’s performance or NAV.
Management
Risks
The
Adviser’s judgments about the attractiveness, value and potential appreciation of a particular asset class or individual
security in which the Fund invests may prove to be incorrect and there is no guarantee that the Adviser’s judgment will
produce the desired results. Similarly, the Fund’s investments in Underlying Funds are subject to the judgment of the Underlying
Funds’ managers which may prove to be incorrect. In addition, the Adviser will have limited information as to the portfolio
holdings of the Underlying Funds at any given time. This may result in the Adviser having less ability to respond to changing
market conditions. The Fund may allocate its assets so as to under-emphasize or over-emphasize ETFs or other investments under
the wrong market conditions, in which case the Fund’s NAV may be adversely affected.
Market
Disruption and Geopolitical Risks
The
value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic
and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies
or governments. These movements, sometimes called volatility, may be greater or less depending on the types of securities the
Fund owns and the markets in which the securities trade. The increasing interconnectivity between global economies and financial
markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a
different country, region or financial market. Securities in the Fund’s portfolio may underperform due to inflation (or
expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, pandemics,
epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar
to those in recent years, such as terrorist attacks around the world, natural disasters, social and political discord or debt
crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global
financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events
affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects.
Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund’s portfolio,
as well as its ability to sell securities to meet redemptions. There is a risk that you may lose money by investing in the Fund.
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Social,
political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics),
terrorism, conflicts and social unrest, may occur and could significantly impact issuers, industries, governments and other systems,
including the financial markets. As global systems, economies and financial markets are increasingly interconnected, events that
once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region
or financial market will, more frequently, adversely impact issuers in other countries, regions or markets. These impacts can
be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. These types of events
quickly and significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption.
The extent and nature of the impact on supply chains or economies and markets from these events is unknown, particularly if a
health emergency or other similar event persists for an extended period of time. Social, political, economic and other conditions
and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts and social unrest,
could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally
have a significant impact on the economies and financial markets and the Adviser’s investment advisory activities and services
of other service providers, which in turn could adversely affect the Fund’s investments and other operations. The value
of the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations
and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or beneficial
to the investment advisory or other activities on behalf the Fund.
In
early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. The outbreak of COVID-19 and its variants
resulted in closing international borders, enhanced health screenings, healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general public concern and uncertainty. This outbreak
negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual
companies and the market in general in significant and unforeseen ways. On May 5, 2023, the World Health Organization declared
the end of the global emergency status for COVID-19. The United States subsequently ended the federal COVID-19 public health emergency
declaration effective May 11, 2023. Although vaccines for COVID-19 are widely available, it is unknown how long certain circumstances
related to the pandemic will persist, whether they will reoccur in the future and what additional implications may follow from
the pandemic. The impact of these events and other epidemics or pandemics in the future could adversely affect Fund performance.
Annual Report | July 31,
2023 |
67 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
In
February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat
of wider-spread hostilities could have a severe adverse effect on the region and global economies, including significant negative
impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on
Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact
on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict
and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related
events could have a significant impact on Fund performance and the value of Fund investments.
Disclosures
related to the COVID-19 pandemic and Russian military attack on Ukraine have been updated since the prior disclosure date.
Master
Limited Partnerships Risks
The
Underlying Funds may invest in MLPs. Investments in publicly traded MLPs, which are limited partnerships or limited liability
companies taxable as partnerships, involve some risks that differ from an investment in the common stock of a corporation, including
risks related to limited control and limited rights to vote on matters affecting MLPs, risks related to potential conflicts of
interest between an MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general
partner’s right to require unit-holders to sell their common units at an undesirable time or price. MLPs may derive income
and gains from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting
gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs generally have two classes of owners,
the general partner and limited partners. When investing in an MLP, an Underlying Fund generally purchases publicly traded common
units issued to limited partners of the MLP. The general partner is typically owned by a major energy company, an investment fund,
the direct management of the MLP or is an entity owned by one or more of such parties. The general partner may be structured as
a private or publicly traded corporation or other entity. The general partner typically controls the operations and management
of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s
operations and management. As compared to common stockholders of a corporation, holders of MLP common units have more limited
control and limited rights to vote on matters affecting the partnership.
MLPs
are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions
up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner
interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests
have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages.
Distributable cash in excess of the MQD paid to both common and subordinated units is distributed to both common and subordinated
units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner
operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the
general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage
of the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where it receives
50% of every incremental dollar paid to common and subordinated unit holders. These incentive distributions encourage the general
partner to streamline costs, increase capital expenditures and acquire assets in order to increase the partnership’s cash
flow and raise the quarterly cash distribution in order to reach higher tiers. Such results benefit all security holders of the
MLP.
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
MLP
common units represent a limited partnership interest in the MLP. MLP common units are listed and traded on U.S. securities exchanges,
with their value fluctuating predominantly based on prevailing market conditions and the success of the MLP. An Underlying Fund
may purchase MLP common units in market transactions. Unlike owners of common stock of a corporation, owners of MLP common units
have limited voting rights and have no ability to elect directors. In the event of liquidation, MLP common units have preference
over subordinated units, but not over debt or preferred units, to the remaining assets of the MLP.
MLPs
may be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. Certain
MLP securities may trade in lower volumes due to their smaller capitalizations. Accordingly, those MLPs may be subject to more
abrupt or erratic price movements and may lack sufficient market liquidity to enable an Underlying Fund to effect sales at an
advantageous time or without a substantial drop in price. As a result, these investments may be difficult to dispose of at a fair
price at the times when an Underlying Fund believes it is desirable to do so. MLPs are generally considered interest-rate sensitive
investments. During periods of interest rate volatility, these investments may not provide attractive returns, which may adversely
impact the overall performance of the Fund or an Underlying Fund.
MLPs
are subject to various risks related to the underlying operating companies they control, including dependence upon specialized
management skills and the risk that those operating companies may lack or have limited operating histories. The success an Underlying
Fund’s investments in an MLP will vary depending on the underlying industry represented by the MLP’s portfolio. Certain
MLPs in which an Underlying Fund may invest depend upon their parent or sponsor entities for the majority of their revenues.
Certain
MLPs in which an Underlying Fund may invest depend upon a limited number of customers for substantially all of their revenue.
Similarly, certain MLPs in which an Underlying Fund may invest depend upon a limited number of suppliers of goods or services
to continue their operations. The loss of those customers or suppliers could have a material adverse effect on an MLP’s
results of operations and cash flow, and on its ability to make distributions to unit holders such as an Underlying Fund.
The
benefit an Underlying Fund will derive from its investment in MLPs will be largely dependent on the MLPs being treated as partnerships
and not as corporations for federal income tax purposes. As a partnership, an MLP generally has no tax liability at the entity
level. If, as a result of a change in current law or a change in an MLP’s business, an MLP were treated as a corporation
for federal income tax purposes, such MLP would be obligated to pay federal income tax on its income at the corporate tax rate.
If an MLP were classified as a corporation for federal income tax purposes, the amount of cash available for distribution by the
MLP would be reduced and distributions received by an Underlying Fund would be taxed under federal income tax laws applicable
to corporate dividends (as dividend income, return of capital, or capital gain). Therefore, treatment of an MLP as a corporation
for federal income tax purposes would result in a reduction in the after-tax return to an Underlying Fund, likely causing a reduction
in the value of the Common Shares.
Annual Report | July 31,
2023 |
69 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Micro-,
Small- and Medium-Sized Company Risks
The
Underlying Funds may invest in securities without regard to market capitalization. Investments in securities of micro-, small-and
medium-sized companies may be subject to more abrupt or erratic market movements than larger, more established companies, because
these securities typically are traded in lower volume and issuers are typically more subject to changes in earnings and future
earnings prospects. Small- and medium-sized companies often have narrower markets for their goods and/or services and more limited
managerial and financial resources than larger, more established companies. Furthermore, these companies often have limited product
lines, services, markets or financial resources, or are dependent on a small management group. Since these stocks are not well-known
to the investing public, do not have significant institutional ownership and are followed by relatively few security analysts,
there will normally be less publicly available information concerning these securities compared to what is available for the securities
of larger companies. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, can decrease the
value and liquidity of securities held by the Fund. As a result, small- and medium-sized companies’ performance can be more
volatile and the companies face greater risk of business failure, which could increase the volatility of the Fund’s portfolio.
The risks are intensified for investments in micro-cap companies.
Options
and Futures Risks
The
Fund and the Underlying Funds may invest in options and futures contracts. The use of futures and options transactions entails
certain special risks. In particular, the variable degree of correlation between price movements of futures contracts and price
movements in the related securities position of the Fund or an Underlying Fund could create the possibility that losses on the
hedging instrument are greater than gains in the value of the Fund’s or Underlying Fund’s position. In addition, futures
and options markets could be illiquid in some circumstances and certain over-the-counter options could have no markets. As a
result, in certain markets, the Fund or an Underlying Fund might not be able to close out a transaction without incurring substantial
losses. Although the Fund’s or an Underlying Fund’s use of futures and options transactions for hedging should tend
to minimize the risk of loss due to a decline in the value of the hedged position, at the same time it will tend to limit any
potential gain to the Fund or an Underlying Fund that might result from an increase in value of the position. There is also the
risk of loss by the Fund or an Underlying Fund of margin deposits in the event of bankruptcy of a broker with whom the Fund or
Underlying Fund has an open position in a futures contract or option thereon. Finally, the daily variation margin requirements
for futures contracts create a greater ongoing potential financial risk than would purchases of options, in which case the exposure
is limited to the cost of the initial premium. However, because option premiums paid by the Fund or an Underlying Fund are small
in relation to the market value of the investments underlying the options, buying options can result in large amounts of leverage.
This leverage offered by trading in options could cause the Fund’s or an Underlying Fund’s NAV to be subject to more
frequent and wider fluctuation than would be the case if the Fund or Underlying Fund did not invest in options.
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
Options
transactions may be effected on securities exchanges or in the over-the-counter market. When options are purchased over-the-counter,
the Fund or an Underlying Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform
its obligations under the option contract. The counterparties to these transactions typically will be major international banks,
broker-dealers and financial institutions. Such options may also be illiquid, and in such cases, the Fund or an Underlying Fund
may have difficulty closing out its position. Banks, broker- dealers or other financial institutions participating in such transactions
may fail to settle a transaction in accordance with the terms of the option as written. In the event of default or insolvency
of the counterparty, the Fund or an Underlying Fund may be unable to liquidate an over-the-counter option position.
The
Fund may purchase put options. An Underlying Fund may purchase and sell call and put options with respect to specific securities,
and may write and sell covered or uncovered call and put options. A call option gives the purchaser of the call option, in return
for a premium paid, the right to buy the security underlying the option from the writer of the call option at a specified exercise
price within a specified time frame. A put option gives the purchaser of the put option, in return for a premium paid, the right
to sell the underlying security to the writer of the put option at a specified price within a specified time frame. A covered
call option is a call option with respect to an underlying security that a fund owns. A covered put option is a put option with
respect to which a fund has segregated cash or liquid securities to fulfill the obligation of the option. The purchaser of a put
or call option runs the risk of losing the purchaser’s entire investment, paid as the premium, in a relatively short period
of time if the option is not sold at a gain or cannot be exercised at a gain prior to expiration. In selling put options, there
is a risk that the Underlying Fund may be required to buy the underlying security at a disadvantageous price above the market
price. The un-covered writer of a call option is subject to a risk of loss if the price of the underlying security should increase,
and the un-covered writer of a put option is subject to a risk of loss if the price of the underlying security should decrease.
The
Fund may invest a significant portion of its total assets in Underlying Funds that write covered call options. To the extent that
an Underlying Fund writes a covered call option, it forgoes, during the option’s life, the opportunity to profit from increases
in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but
has retained the risk of loss should the price of the underlying security decline. As the writer of the option, the Underlying
Fund bears the market risk of an unfavorable change in the price of the security underlying a written option. As an Underlying
Fund writes covered calls over more of its portfolio, its ability to benefit from capital appreciation becomes more limited and
the risk of NAV erosion increases. To the extent an Underlying Fund experiences NAV erosion (which itself may have an indirect
negative effect on the market price of interests in the Underlying Fund), the Underlying Fund will have a reduced asset base over
which to write covered calls, which may eventually lead to reduced distributions to shareholders such as the Fund. The writer
of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once an
option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation
under the option and must deliver the underlying security at the exercise price.
Annual Report | July 31,
2023 |
71 |
RiverNorth Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
|
July 31, 2023 (Unaudited) |
To
the extent that an Underlying Fund engages in selling options that trade in over-the-counter markets, the Underlying Fund may
be subject to additional risks. Participants in these markets are typically not subject to the same credit evaluation and regulatory
oversight as members of “exchange based” markets. By engaging in option transactions in these markets, an Underlying
Fund may take credit risk with regard to parties with which it trades and also may bear the risk of settlement default. These
risks may differ materially from those involved in exchange-traded transactions, which generally are characterized by clearing
organization guarantees, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable
to intermediaries. Transactions entered into directly between two counterparties generally do not benefit from these protections,
which may subject an Underlying Fund to the risk that a counterparty will not settle a transaction in accordance with agreed terms
and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such “counterparty
risk” is increased for contracts with longer maturities when events may intervene to prevent settlement.
The
Fund or an Underlying Fund may enter into futures contracts in U.S. domestic markets or on exchanges located outside of the United
States. Foreign markets may offer advantages, including trading opportunities or arbitrage possibilities, not available in the
United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges
are principal markets, so that no common clearing facility exists and an investor may look only to the broker or counterparty
for the performance of the contract. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is
not regulated by the Commodity Futures Trading Commission.
There
can be no assurance that a liquid market will exist for any particular futures contract at any particular time. Many futures exchanges
and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the
daily limit has been reached in a particular contract, no trades may be made that day of a price beyond that limit or trading
may be suspended for specified periods during the trading day.
The
Fund or an Underlying Fund may purchase and sell single stock futures, stock index futures contracts, interest rate futures contracts,
currency futures and other commodity futures. A stock index future obligates a fund to pay or receive an amount of cash based
upon the value of a stock index at a specified date in the future. An interest rate futures contract obligates a fund to purchase
or sell an amount of a specific debt security at a future date at a specified price. A currency futures contract obligates a fund
to purchase or sell an amount of a specific currency at a future date at a future price.
If
the Fund or an Underlying Fund purchases an option and the price of the underlying stock fails to move in the expected direction,
the Fund or Underlying Fund will lose most or all of the amount the fund paid for the option, plus commission costs. If an Underlying
Fund writes (“sells”) an option and the price of the underlying stock fails to move in the expected direction, the
Underlying Fund’s losses could easily exceed the proceeds it received when it wrote the options.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding the Fund |
July
31, 2023 (Unaudited)
Private
Debt Risk
The
Fund may invest in debt issued by non-listed funds and BDCs (“Private Debt”). Private Debt often may be illiquid and
is typically not listed on an exchange and traded less actively than similar securities issued by publicly traded-vehicles. For
certain Private Debt investments, trading may only be possible through the assistance of the broker who originally brought the
security to the market and has a relationship with the issuer. Due to the limited trading market, independent pricing services
may be unable to provide a price for Private Debt, and as such the fair value of the securities may be determined in good faith
under procedures approved by the Board, which typically will include the use of one or more independent broker quotes.
Real
Estate Investment Trust (“REIT”) Risks
The
Underlying Funds may invest in equity and mortgage REITs. Equity REITs invest in real estate, and mortgage REITs invest in loans
secured by real estate. Investing in REITs involves certain unique risks in addition to those risks associated with investing
in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned
by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management
skills, are not diversified, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs also
are subject to the possibilities of failing to qualify for tax free pass-through of income under the Internal Revenue Code of
1986, as amended (the “Code”), and failing to maintain their exemption from registration under the 1940 Act. Investment
in REITs involves risks similar to those associated with investing in small capitalization companies, and REITs (especially mortgage
REITs) are subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations
can be expected to rise. Conversely, when interest rates rise, the value of a REIT’s investment in fixed rate obligations
can be expected to decline. By investing in REITs directly or indirectly through the Underlying Funds, the Fund will indirectly
bear its proportionate share of the expenses of the REITs. The expenses at the REIT level are not included in the Fund’s
expense table as acquired fund fees and expenses.
Securities
Lending Risks
The
Underlying Funds may engage in securities lending. Securities lending involves counterparty risk, including the risk that the
loaned securities may not be returned in a timely manner and/or a loss of rights in the collateral if the borrower or the lending
agent defaults. This risk is increased when an Underlying Fund’s loans are concentrated with a single or limited number
of borrowers. In addition, an Underlying Fund bears the risk of loss in connection with the investments of the cash collateral
it receives from the borrower. To the extent that the value or return of an Underlying Fund’s investments of the cash collateral
declines below the amount owed to a borrower, the Underlying Fund may incur losses that exceed the amount it earned in lending
the security.
Securities
Risks
The
value of the Fund or an Underlying Fund may decrease in response to the activities and financial prospects of individual securities
in the Fund’s portfolio.
Annual Report | July 31, 2023 |
73 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July 31, 2023 (Unaudited)
Senior
Loan Risks
The
Underlying Funds may invest in senior secured floating rate and fixed-rate loans (“Senior Loans”). There is less readily
available and reliable information about most Senior Loans than is the case for many other types of instruments, including listed
securities. Senior Loans are not listed on any national securities exchange or automated quotation system and as such, many Senior
Loans are illiquid, meaning that an Underlying Fund may not be able to sell them quickly at a fair price. To the extent that a
secondary market does exist for certain Senior Loans, the market is more volatile than for liquid, listed securities and may be
subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. The market for Senior Loans
could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior Loans,
like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a Senior
Loan will result in a reduction of income to the Fund, a reduction in the value of the Senior Loan and a potential decrease in
the Fund’s NAV of the Common Shares.
The
Underlying Funds may acquire or hold Senior Loans of borrowers that are experiencing, or are more likely to experience, financial
difficulty, including Senior Loans issued to highly leveraged borrowers or borrowers that have filed for bankruptcy protection.
Borrowers may have outstanding debt obligations, including Senior Loans, that are rated below investment grade. An Underlying
Fund may invest a substantial portion of its assets in Senior Loans that are rated below investment grade or that are unrated
at the time of purchase but are deemed by the Underlying Fund’s adviser’s to be of comparable quality. The values
of Senior Loans of borrowers that have filed for bankruptcy protection or that are experiencing payment difficulty could be affected
by, among other things, the assessment of the likelihood that the lenders ultimately will receive repayment of the principal amount
of such Senior Loans, the likely duration, if any, of a lapse in the scheduled payment of interest and repayment of principal
and prevailing interest rates. There is no assurance that an Underlying Fund will be able to recover any amount on Senior Loans
of such borrowers or that sale of the collateral granted in connection with Senior Loans would raise enough cash to satisfy the
borrower’s payment obligation or that the collateral can or will be liquidated. In the event of bankruptcy, liquidation
may not occur and the bankruptcy court may not give lenders the full benefit of their senior position in the capital structure
of the borrower.
Short
Sale Risks
The
Fund and Underlying Funds may sell securities short. Positions in shorted securities are speculative and more risky than long
positions (purchases) in securities because the maximum sustainable loss on a security purchased is limited to the amount paid
for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore,
in theory, securities sold short have unlimited risk. Short selling will also result in higher transaction costs (such as interest
and dividends), directly or indirectly through the investments in Underlying Funds, and may result in higher taxes, which reduce
the Fund’s return.
If
a security sold short increases in price, a fund may have to cover its short position at a higher price than the short sale price,
resulting in a loss. With respect to a fund’s short positions, the Fund must borrow those securities to make delivery to
the buyer. A fund may not be able to borrow a security that it needs to deliver or it may not be able to close out a short position
at an acceptable price and may have to sell related long positions before it had intended to do so. As a result, a fund may not
be able to successfully implement its short sale strategy due to the limited availability of desired securities or for other reasons.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July 31, 2023 (Unaudited)
When
borrowing a security for delivery to a buyer, a fund also may be required to pay a premium and other transaction costs, which
would increase the cost of the security sold short. A fund must normally repay to the lender an amount equal to any dividends
or interest earned while the loan is outstanding. The amount of any gain will be decreased, and the amount of any loss increased,
by the amount of the premium, dividends, interest or expenses a fund may be required to pay in connection with the short sale.
Also, the lender of a security may terminate the loan at a time when a fund is unable to borrow the same security for delivery.
In that case, a fund would need to purchase a replacement security at the then current market price or “buy in” by
paying the lender an amount equal to the costs of purchasing the security.
Until
a fund replaces a borrowed security, it is required to maintain a segregated account of cash or liquid assets to cover the fund’s
short position. Securities held in a segregated account cannot be sold while the position they are covering is outstanding, unless
they are replaced with similar securities. Additionally, a fund must maintain sufficient liquid assets (less any additional collateral
held by the broker), marked-to-market daily, to cover its short sale obligations. This may limit a fund’s investment flexibility,
as well as its ability to meet redemption requests or other current obligations.
In
addition, until a fund replaces a borrowed instrument, a fund may also be required to maintain short sale proceeds with the lending
broker as collateral. Moreover, a fund will be required to make margin payments to the lender during the term of the borrowing
if the value of the security it borrowed (and sold short) increases. Thus, short sales involve credit exposure to the broker that
executes the short sales. In the event of the bankruptcy or other similar insolvency with respect to a broker with whom a fund
has an open short position, a fund may be unable to recover, or be delayed in recovering, any margin or other collateral held
with or for the lending broker.
Because
a fund’s loss on a short sale arises from increases in the value of the security sold short, the loss is theoretically unlimited.
In certain cases, purchasing a security to cover a short position can itself cause the price of the security to rise further,
which would exacerbate the loss. Conversely, gains on short sales, after transaction and related costs, are generally the difference
between the price at which a fund sold the borrowed security and the price it paid to purchase the security for delivery to the
buyer. By contrast, a fund’s loss on a long position arises from decreases in the value of the security and is limited by
the fact that a security’s value cannot drop below zero.
By
investing the proceeds received from selling securities short, the Fund is using a form of leverage, which creates special risks.
The use of leverage may increase the Fund’s exposure to long equity positions and make any change in the Fund’s NAV
greater than it would be without the use of leverage. This could result in increased volatility of returns. There is no guarantee
that the Fund will leverage its portfolio, or if it does, that the Fund’s leveraging strategy will be successful. The Fund
also cannot guarantee that the use of leverage will produce a higher return on an investment.
SOFR
Risk
SOFR
is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S. Treasury
securities. SOFR is calculated based on transaction-level repodata collected from various sources. For each trading day, SOFR
is calculated as a volume-weighted median rate derived from such data. SOFR is calculated and published by the Federal Reserve
Bank of New York (“FRBNY”). If data from a given source required by the FRBNY to calculate SOFR is unavailable for
any day, then the most recently available data for that segment will be used, with certain adjustments. If errors are discovered
in the transaction data or the calculations underlying SOFR after its initial publication on a given day, SOFR may be republished
at a later time that day. Rate revisions will be effected only on the day of initial publication and will be republished only
if the change in the rate exceeds one basis point.
Annual Report | July 31,
2023 |
75 |
RiverNorth
Opportunities Fund, Inc. |
|
Summary
of Updated Information Regarding
the Fund |
July 31, 2023 (Unaudited)
Because
SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR was intended
to be an unsecured rate that represents interbank funding costs for different short-term maturities or tenors. It was a forward-looking
rate reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR was intended to be sensitive, in certain
respects, to bank credit risk and to term interest rate risk. In contrast, SOFR is a secured overnight rate reflecting the credit
of U.S. Treasury securities as collateral. Thus, it is largely insensitive to credit-risk considerations and to short-term interest
rate risks. SOFR is a transaction-based rate, and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR,
will perform in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates
will be a suitable substitute for LIBOR. SOFR has a limited history, having been first published in April 2018. The future performance
of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s history or otherwise. Levels of SOFR in the
future, including following the discontinuation of LIBOR, may bear little or no relation to historical levels of SOFR, LIBOR or
other rates. The inclusion of SOFR Risk is a change since the prior disclosure date.
Special
Purpose Acquisition Companies Risks
The
Fund may invest in SPACs. SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities.
Unless and until an acquisition is completed, a SPAC generally invests its assets (less an amount to cover expenses) in U.S. government
securities, money market fund securities and cash. SPACs and similar entities may be blank check companies with no operating history
or ongoing business other than to seek a potential acquisition. Accordingly, the value of their securities is particularly dependent
on the ability of the entity’s management to identify and complete a profitable acquisition. Certain SPACs may seek acquisitions
only in limited industries or regions, which may increase the volatility of their prices. If an acquisition that meets the requirements
for the SPAC is not completed within a predetermined period of time, the invested funds are returned to the entity’s shareholders.
Investments in SPACs may be illiquid and/or be subject to restrictions on resale. To the extent the SPAC is invested in cash or
similar securities, this may impact the Fund’s ability to meet its investment objective.
The
officers and directors of a SPAC may operate multiple SPACs and could have conflicts of interest in determining to which SPAC
a particular business opportunity should be presented. In such circumstances, there can be no assurance that a given business
opportunity would be presented to the SPAC in which the Fund holds an investment.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
Structured
Notes Risks
The
Underlying Funds may invest in structured notes. Structured notes are subject to a number of fixed income risks including general
market risk, interest rate risk, and the risk that the issuer on the note may fail to make interest and/or principal payments
when due, or may default on its obligations entirely. In addition, because the performance of structured notes tracks the performance
of the underlying debt obligation, structured notes generally are subject to more risk than investing in a simple note or bond
issued by the same issuer. It is impossible to predict whether the referenced factor (such as an index or interest rate) or prices
of the underlying securities will rise or fall. To the extent that an Underlying Fund invests in structured notes, the Underlying
Fund may be more volatile than other funds that do not invest in structured notes. The actual trading prices of structured notes
may be significantly different from the principal amount of the notes. If an Underlying Fund sells the structured notes prior
to maturity, it may suffer a loss of principal. At final maturity, structured notes may be redeemed in cash or in kind, which
is at the discretion of the issuer. If the notes are redeemed in kind, a fund would receive shares of stock at a depressed price.
To the extent that a structured note is not principal-protected through an insurance feature, the note’s principal will
not be protected. In the case of a decrease in the value of the underlying asset, an Underlying Fund would receive shares at a
value less than the original amount invested; while an increase in the value of an underlying asset will not increase the return
on the note.
Swap
Risks
The
Fund and the Underlying Funds may enter into interest rate, index, total return and currency swap agreements. Swap agreements
are two-party contracts under which the fund and a counterparty, such as a broker or dealer, agree to exchange the returns (or
differentials in rates of return) earned or realized on an agreed-upon underlying asset or investment over the term of the swap.
The use of swap transactions is a highly specialized activity which involves strategies and risks different from those associated
with ordinary portfolio security transactions. If the Adviser or an Underlying Fund’s investment adviser is incorrect in
its forecasts of default risks, market spreads, liquidity or other applicable factors or events, the investment performance of
the Fund or Underlying Fund would diminish compared with what it would have been if these techniques were not used. Swaps and
swap options can be used for a variety of purposes, including: to manage fund exposure to changes in interest or foreign currency
exchange rates and credit quality; as an efficient means of adjusting fund overall exposure to certain markets; in an effort to
enhance income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust
portfolio duration.
There
are risks in the use of swaps. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes
are not correctly anticipated. Total return swaps could result in losses if the reference index, security, or investments do not
perform as anticipated. Total return swaps involve an enhanced risk that the issuer or counterparty will fail to perform its contractual
obligations. Total return swaps may effectively add leverage to the Fund’s portfolio because the Fund would be subject to
investment exposure on the full notional amount of the swap. To the extent the Fund or an Underlying Fund enters into a total
return swap on equity securities, the Fund or the Underlying Fund will receive the positive performance of a notional amount of
such securities underlying the total return swap. In exchange, the Fund or the Underlying Fund will be obligated to pay the negative
performance of such notional amount of securities. Therefore, the Fund or the Underlying Fund assumes the risk of a substantial
decrease in the market value of the equity securities. The use of swaps may not always be successful; using them could lower fund
total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed the fund’s initial
investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out
the fund’s investment at a reasonable price, which could turn an expected gain into a loss.
Annual Report | July 31,
2023 |
77 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
Currently,
certain categories of interest rate swaps are subject to mandatory clearing, and more are expected to be cleared in the future.
The counterparty risk for cleared derivatives is generally expected to be lower than for uncleared over-the-counter derivative
transactions as each party to a transaction looks only to the central clearing house for performance of obligations under the
transaction. However, there can be no assurance that a clearing house, or its members, will satisfy the clearing house’s
obligations to the fund or that the fund’s use of swaps will be advantageous.
Underlying
Fund Risks
The
Fund will invest in Underlying Funds such as other closed-end funds and ETFs. The expenses of the Fund will generally be higher
than the direct expenses of other fund shares. The Fund will indirectly bear fees and expenses charged by the Underlying Funds
in which the Fund invests in addition to the Fund’s direct fees and expenses. The Fund may also incur brokerage costs when
it purchases shares of Underlying Funds. Furthermore, investments in Underlying Funds could affect the timing, amount and character
of distributions to Common Stockholders and therefore may increase the amount of taxes payable by investors in the Fund. The value
of your investment in the Fund will go up and down with the prices of Underlying Fund shares (and other securities) in which the
Fund invests. Similarly, the value of the Fund’s investments in Underlying Funds will go up and down with the prices of
the securities in which the Underlying Funds invest.
There
is also the risk that the Fund may suffer losses due to the investment practices or operations of the Underlying Funds. To the
extent that the Fund invests in one or more Underlying Funds that concentrate in a particular industry, the Fund would be vulnerable
to factors affecting that industry and the concentrating Underlying Funds’ performance, and that of the Fund, may be more
volatile than Underlying Funds that do not concentrate.
As
the Fund will invest at least 80% of its Managed Assets in Underlying Funds, the Fund’s performance will depend to a greater
extent on the overall performance of closed-end funds, ETFs, BDCs and SPACs generally, in addition to the performance of the specific
Underlying Funds (and other assets) in which the Fund invests. The use of leverage by Underlying Funds magnifies gains and losses
on amounts invested and increases the risks associated with investing in Underlying Funds. Further, the Underlying Funds are not
subject to the Fund’s investment policies and restrictions. The Fund generally receives information regarding the portfolio
holdings of Underlying Funds only when that information is made available to the public. The Fund cannot dictate how the Underlying
Funds invest their assets. The Underlying Funds may invest their assets in securities and other instruments, and may use investment
techniques and strategies, that are not described in this disclosure. Common Stockholders will bear two layers of fees and expenses
with respect to the Fund’s investments in Underlying Funds because each of the Fund and the Underlying Fund will charge
fees and incur separate expenses. In addition, subject to applicable 1940 Act limitations, the Underlying Funds themselves may
purchase securities issued by registered and unregistered funds (e.g., common stock, preferred stock, auction rate preferred stock),
and those investments would be subject to the risks associated with Underlying Funds and unregistered funds (including a third
layer of fees and expenses, i.e., the Underlying Fund will indirectly bear fees and expenses charged by the funds in which the
Underlying Fund invests, in addition to the Underlying Fund’s own fees and expenses). An Underlying Fund with positive performance
may indirectly receive a performance fee from the Fund, even when the Fund’s overall returns are negative. Additionally,
the Fund’s investment in an Underlying Fund may result in the Fund’s receipt of cash in excess of the Underlying Fund’s
earnings; if the Fund distributes these amounts, the distributions could constitute a return of capital to Fund shareholders for
federal income tax purposes. As a result of these factors, the use of the fund of funds structure by the Fund could therefore
affect the amount, timing and character of distributions to shareholders.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
The
Fund may invest in shares of closed-end funds that are trading at a discount to NAV or at a premium to NAV and closed-end funds
may not be able to outperform their benchmarks. There can be no assurance that the market discount on shares of any closed-end
fund purchased by the Fund will ever decrease. In fact, it is possible that this market discount may increase and the Fund may
suffer realized or unrealized capital losses due to further decline in the market price of the securities of such closed-end funds,
thereby adversely affecting the Fund’s NAV. The Fund’s investment in the Common Shares of closed-end funds that are
financially leveraged may create an opportunity for greater total return on its investment, but at the same time may be expected
to exhibit more volatility in market price and NAV than an investment in shares of investment companies without a leveraged capital
structure.
The
Fund may invest in BDCs. BDCs generally invest in less mature U.S. private companies or thinly traded U.S. public companies which
involve greater risk than well-established publicly-traded companies. While BDCs are expected to generate income in the form of
dividends, certain BDCs during certain periods of time may not generate such income. The Fund will indirectly bear its proportionate
share of any management fees and other operating expenses incurred by the BDCs and of any performance-based or incentive fees
payable by the BDCs in which it invests, in addition to the expenses paid by the Fund. A BDC’s incentive fee may be very
high, vary from year to year and be payable even if the value of the BDC’s portfolio declines in a given time period. Incentive
fees may create an incentive for a BDC’s manager to make investments that are risky or more speculative than would be the
case in the absence of such compensation arrangements, and may also encourage the BDC’s manager to use leverage to increase
the return on the BDC’s investments. The use of leverage by BDCs magnifies gains and losses on amounts invested and increases
the risks associated with investing in BDCs. A BDC may make investments with a larger amount of risk of volatility and loss of
principal than other investment options and may also be highly speculative and aggressive.
The
1940 Act imposes certain constraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their
total assets primarily in securities of U.S. private companies or thinly traded U.S. public companies, cash, cash equivalents,
U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information
exists for private and thinly traded companies in which a BDC may invest and there is a risk that investors may not be able to
make a fully informed evaluation of a BDC and its portfolio of investments. With respect to investments in debt instruments, there
is a risk that the issuers of such instruments may default on their payments or declare bankruptcy. Many debt investments in which
a BDC may invest will not be rated by a credit rating agency and will be below investment grade quality. These investments are
commonly referred to as “junk bonds” and have predominantly speculative characteristics with respect to an issuer’s
capacity to make payments of interest and principal. Although lower grade securities are potentially higher yielding, they are
also characterized by high risk. In addition, the secondary market for lower grade securities may be less liquid than that of
higher rated securities. Certain BDCs may also be difficult to value since many of the assets of BDCs do not have readily ascertainable
market values.
Annual Report | July 31,
2023 |
79 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
Additionally,
a BDC may only incur indebtedness in amounts such that the BDC’s asset coverage ratio of total assets to total senior securities
equals at least 200% after such incurrence. These limitations on asset mix and leverage may affect the way that the BDC raises
capital. BDCs compete with other entities for the types of investments they make, and such entities are not necessarily subject
to the same investment constraints as BDCs.
Index-based
ETFs (and other index funds) in which the Fund may invest may not be able to replicate exactly the performance of the indices
they track or benchmark because the total return generated by the securities will be reduced by transaction costs incurred in
adjusting the actual balance of the securities. ETFs may trade at a price above (premium) or below (discount) their NAV, especially
during periods of significant market volatility or stress, causing investors to pay significantly more or less than the value
of the ETF’s underlying portfolio. Certain ETFs traded on exchanges may be thinly traded and experience large spreads between
the “ask” price quoted by a seller and the “bid” price offered by a buyer. While the creation/redemption
feature is designed to make it likely that ETF shares normally will trade close to their NAVs, market prices are not expected
to correlate exactly to the shares’ NAVs due to timing reasons, supply and demand imbalances and other factors. In addition,
disruptions to creations and redemptions, adverse developments impacting market makers, authorized participants or other market
participants, high market volatility or lack of an active trading market for an ETF’s shares (including through a trading
halt) may result in market prices that differ significantly from its NAV or to the intraday value of the ETF’s holdings.
An active trading market for shares of an ETF may not develop or be maintained. When all or a portion of an ETF’s underlying
securities trade in a foreign market that is closed during the time the domestic market in which the ETF’s shares are listed
and traded is open, there may be changes between the last quote from the closed foreign market and the value of such underlying
security during the ETF’s trading day.
In
times of market stress, market makers or authorized participants may step away from their respective roles in making a market
in shares of the ETF and in executing purchase or redemption orders. During such times, the ETF’s shares may trade at a
wider than normal discount or premium and may possibly face trading halts. Additionally, the underlying securities of an ETF may
be traded outside of a collateralized settlement system, such as the National Securities Clearing Corporation, a clearing agency
that is registered with the SEC. There are a limited number of financial institutions that may act as authorized participants
that pose collateral for certain trades on an agency basis. To the extent that these authorized participants exit the business
or are unable to proceed with creation and/or redemption orders with the ETF, and no other authorized participant is able to step
forward, ETF shares may trade at a discount to NAV and possibly face trading halts and/or delisting. Additionally, in stressed
market conditions, the market for ETF shares may become less liquid in response to deteriorating liquidity in the markets for
such ETF’s underlying portfolio holdings, and this may cause the shares of the ETF to trade at a wider than normal discount
or premium. Furthermore, purchases and redemptions of creation units primarily in cash rather than in-kind may cause an ETF to
incur certain costs, such as brokerage costs, taxable gains or other losses that it may not have incurred with an in-kind purchase
or redemption. These costs may be borne by the ETF and decrease the ETF’s NAV to the extent they are not offset by a transaction
fee payable by an authorized participant.
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
In
addition, index-based ETFs (and other index funds) will incur expenses not incurred by their applicable indices. Certain securities
comprising the indices tracked by these investments may, from time to time, temporarily be unavailable, which may further impede
the ability of the index-based ETFs and other index funds to track their applicable indices. Underlying Funds may not be able
to match or outperform their respective benchmarks. With sector ETFs, there is a risk that securities within the same group of
industries will decline in price due to sector-specific market or economic developments. The Fund may also invest in actively
managed ETFs that are subject to management risk as the ETF’s investment adviser will apply certain investment techniques
and risk analyses in making investment decisions. There can be no guarantee that these will produce the desired results.
Certain
of the Underlying Funds in which the Fund will invest may be taxed as regulated investment companies under Subchapter M of the
Code. To qualify and remain eligible for the special tax treatment accorded to regulated investment companies and their shareholders,
such Underlying Funds must meet certain source-of-income, asset diversification and annual distribution requirements. If an Underlying
Fund in which the Fund invests fails to qualify as a regulated investment company, such Underlying Fund would be liable for federal,
and possibly state, corporate taxes on its taxable income and gains. Such failure by an Underlying Fund could substantially reduce
the Underlying Fund’s net assets and the amount of income available for distribution to the Fund, which would in turn decrease
the total return of the Fund in respect of such investment.
The
Fund’s investments in Underlying Funds may be restricted by certain provisions of the 1940 Act. Under Section 12(d)(1)(A)
of the 1940 Act, the Fund may hold securities of an Underlying Fund in amounts which (i) do not exceed 3% of the total outstanding
voting stock of the Underlying Fund, (ii) do not exceed 5% of the value of the Fund’s total assets and (iii) when added
to all other Underlying Fund securities held by the Fund, do not exceed 10% of the value of the Fund’s total assets. Under
Section 12(d)(1)(C) of the 1940 Act, the Fund, together with any other investment companies for which the Adviser acts as an investment
adviser, may not, in the aggregate, own more than 10% of the total outstanding voting stock of a registered closed-end investment
company. Section 12(d)(1)(F) of the 1940 Act provides that the limitations of Section 12(d)(1) described above shall not apply
to securities purchased or otherwise acquired by the Fund if (i) immediately after such purchase or acquisition not more than
3% of the total outstanding stock of such Underlying Fund is owned by the Fund and all affiliated persons of the Fund, and (ii)
certain requirements are met with respect to sales charges. In addition, Rule 12d1-4 under the 1940 Act (“Rule 12d1-4”),
effective as of January 19, 2022, permits the Fund to invest in Underlying Funds beyond the limitations of Section 12(d)(1) described
above, subject to various conditions, including that the Fund enter into an investment agreement with the Underlying Fund (which
agreements may impose additional conditions on the Fund). In matters upon which the Fund is solicited to vote as a shareholder
of an Underlying Fund, the Adviser may be required to vote Underlying Fund shares in the same proportion as shares held by other
shareholders of the Underlying Fund.
Annual Report | July 31,
2023 |
81 |
RiverNorth
Opportunities Fund, Inc. |
Summary
of Updated Information Regarding
the Fund |
July
31, 2023 (Unaudited)
Warrant
Risks
The
Fund and the Underlying Funds may invest in warrants. Warrants are securities giving the holder the right, but not the obligation,
to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a
specified period or perpetually. Warrants do not carry with them the right to dividends or voting rights with respect to the securities
that they entitle their holder to purchase and they do not represent any rights in the assets of the issuer. The value of a warrant
does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised
prior to its expiration date.
Portfolio
Manager Information
Since
the prior disclosure date, there have been no changes in the Fund’s portfolio managers or background.
Fund
Organizational Structure
Since
the prior disclosure date, there have been no changes in the Fund’s charter or by-laws that would delay or prevent a change
of control of the Fund that have not been approved by stockholders.
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
July
31, 2023 (Unaudited)
The
following table provides information regarding each Director who is not an “interested person” of the Fund, as defined
in the 1940 Act.
INDEPENDENT
DIRECTORS
Name,
Address1 and
Year of Birth |
Position(s)
Held with
the Fund |
Term of
Office and
Length of
Time
Served |
Principal Occupation(s)
During Past 5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other Directorships
Held by the Director
During the Past 5 Years |
John
K.
Carter
(1961)
|
Director |
Current
term expires in 2024. Has served since 2013. |
Founder,
Special Counsel, Law Office of John K. Carter, P.A. (a general practice and corporate law
firm) (2015 to present). |
11 |
Carillon
Mutual Funds (16 funds) (2016 to present); RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (1
fund) (2016 to present); RiverNorth Funds (3 funds) (2013 to present); RiverNorth Opportunistic
Municipal Income Fund, Inc. (1 fund) (2018 to present); RiverNorth Managed Duration Municipal Income Fund, Inc. (1 fund)
(2019 to present); RiverNorth Flexible Municipal Income Fund, Inc. (1 fund) (2019 to present); RiverNorth Flexible
Municipal Income Fund II, Inc. (1 fund) (2021 to present); RiverNorth Managed Duration Municipal Income Fund II, Inc. (1
fund) (2022 to present); RiverNorth Capital and Income Fund, Inc. (1 fund) (2015 to present). |
Annual Report | July 31,
2023 |
83 |
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
July
31, 2023 (Unaudited)
INDEPENDENT
DIRECTORS |
|
|
|
Name,
Address1 and
Year of Birth |
Position(s)
Held with
the Fund |
Term of
Office and
Length of
Time
Served |
Principal Occupation(s)
During Past 5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other Directorships
Held by the Director
During the Past 5 Years |
J.
Wayne
Hutchens
(1944)
|
Director |
Current
term expires in 2025. Has served since 2013. |
Currently
retired; Trustee of the Denver Museum of Nature and Science (2000 to 2020); Director of AMG National
Trust Bank (June 2012 to present); Trustee of Children’s Hospital Colorado (May 2012 to
2020). |
11 |
ALPS
Series Trust (11 funds) (2012 to present); RiverNorth / DoubleLine Strategic Opportunity Fund, Inc. (1
fund) (2018 to present); RiverNorth Funds (3 funds) (2021 to present);
RiverNorth Opportunistic Municipal Income Fund, Inc. (1 fund) (2018 to present); RiverNorth Managed Duration
Municipal Income Fund, Inc. (1 fund) (2019 to present); RiverNorth Flexible Municipal Income Fund, Inc. (1 fund) (2019
to present); RiverNorth Flexible Municipal Income Fund II, Inc. (1 fund) (2021 to present); RiverNorth Managed
Duration Municipal Income Fund II, Inc. (1 fund) (2022 to present); RiverNorth Capital and Income Fund, Inc. (1 fund)
(2018 to present). |
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
July
31, 2023 (Unaudited)
INDEPENDENT
DIRECTORS
Name,
Address1 and
Year of Birth |
Position(s)
Held with
the Fund |
Term of
Office and
Length of
Time
Served |
Principal Occupation(s)
During Past 5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other Directorships
Held by the Director
During the Past 5 Years |
Lisa
B. Mougin
(1972) |
Director
|
Current
term expires in 2024. Has served since 2022. |
Chief
Investment Officer of Capital Sisters International (a non-profit) (2023 to present); President & Chief
Operating Officer at Positivly, a TIFIN Company (a fintech software company) (2020 to 2022); Senior
Vice President of ALPS Fund Services, LLC (1998 to 2017). |
8
|
RiverNorth/DoubleLine
Strategic Opportunity Fund, Inc. (1 fund) (2022 to present); RiverNorth Opportunistic Municipal Income Fund, Inc. (1
fund) (2022 to present); RiverNorth Managed Duration Municipal Income Fund, Inc. (1 fund) (2022 to present); RiverNorth
Flexible Municipal Income Fund, Inc. (1 fund) (2022 to present); RiverNorth Flexible Municipal Income Fund II, Inc. (1
fund) (2022 to present); RiverNorth Managed Duration Municipal Income Fund II, Inc. (1 fund) (2022 to present);
RiverNorth Capital and Income Fund, Inc. (1 fund) (2022 to present). |
Annual Report | July 31,
2023 |
85 |
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
July
31, 2023 (Unaudited)
INDEPENDENT
DIRECTORS |
|
|
|
Name, Address1
and Year of Birth |
Position(s) Held
with the Fund |
Term
of Office and Length of Time Served |
Principal Occupation(s)
During Past 5 Years |
Number
of Funds in Fund Complex Overseen by Director2 |
Other Directorships Held by
the Director During the Past 5 Years |
David
M. Swanson
(1957) |
Director |
Current
term expires in 2025. Has served since 2013. |
Founder
& Managing Partner, SwanDog Strategic Marketing (2006 to present). |
11 |
Managed
Portfolio Series (31 funds) (2011 to present); ALPS Variable Investment Trust (7 funds) (2006 to present); RiverNorth/DoubleLine
Strategic Opportunity Fund, Inc. (1 fund) (2018 to present); RiverNorth Funds (3 funds) (2018 to present); RiverNorth Opportunistic
Municipal Income Fund, Inc. (1 fund) (2018 to present); RiverNorth Managed Duration Municipal Income Fund, Inc. (1 fund) (2019
to present); RiverNorth Flexible Municipal Income Fund, Inc. (1 fund) (2019 to present); RiverNorth Flexible Municipal Income
Fund II, Inc. (1 fund) (2021 to present); RiverNorth Managed Duration Municipal Income Fund II, Inc. (1 fund) (2022 to present);
RiverNorth Capital and Income Fund, Inc. (1 fund) (2018 to present); Managed Portfolio Series (33 funds) (2011 to present). |
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
July
31, 2023 (Unaudited)
| 1 | The
mailing address of each Director is 360 South Rosemary Avenue, Suite 1420, West Palm
Beach, FL 33401. |
| 2 | For
all Directors other than Ms. Mougin, the Fund Complex consists of the RiverNorth Core
Opportunity Fund, the RiverNorth/DoubleLine Strategic Income Fund, and the RiverNorth/Oaktree
High Income Fund, each a series of the RiverNorth Funds, RiverNorth Opportunities Fund,
Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., RiverNorth Opportunistic
Municipal Income Fund, Inc., RiverNorth Flexible Municipal Income Fund, Inc., RiverNorth
Flexible Municipal Income Fund II, Inc., RiverNorth Managed Duration Municipal Income
Fund, Inc., RiverNorth Managed Duration Municipal Income Fund II, Inc. and RiverNorth
Capital and Income Fund, Inc. For Ms. Mougin, the Fund Complex consists of the RiverNorth
Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., RiverNorth
Opportunistic Municipal Income Fund, Inc., RiverNorth Flexible Municipal Income Fund,
Inc., RiverNorth Flexible Municipal Income Fund II, Inc., RiverNorth Managed Duration
Municipal Income Fund, Inc., RiverNorth Managed Duration Municipal Income Fund II, Inc.
and RiverNorth Capital and Income Fund, Inc. The following table provides information
regarding each Director who is an “interested person” of the Fund, as defined
in the 1940 Act, and each officer of the Fund. |
Annual Report
| July 31, 2023 |
87 |
River
North Opportunities Fund, Inc. |
Directors
and Officers |
|
July
31, 2023 (Unaudited) |
|
|
INTERESTED
DIRECTORS AND OFFICERS |
|
|
Name,
Address1
and
Year
of Birth |
Position(s)
Held with
Registrant |
Term of
Office and
Length of
Time
Served |
Principal
Occupation(s)
During
Past
5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other
Directorships
Held by the Director During the Past 5 Years |
Patrick
W.
Galley3
(1975)
|
Interested
Director,
Chairman
and
President |
Current
term
expires
in
2026.
Has
served
as
Director
since
2013,
as
Chairman
and
President
since
2022. |
Chief
Executive
Officer,
RiverNorth
Capital
Management,
LLC
(2020 to
present);
Chief
Investment
Officer,
RiverNorth Capital
Management,
LLC
(2004
to present).
|
11 |
RiverNorth/DoubleLine
Strategic
Opportunity
Fund,
Inc. (1 fund)
(2016
to present);
RiverNorth Funds (3
funds)
(2006 to
present);
RiverNorth
Opportunistic
Municipal
Income
Fund,
Inc. (1 fund)
(2018
to present);
RiverNorth Managed
Duration
Municipal
Income
Fund, Inc. (1
fund)
(2019 to
present);
RiverNorth
Flexible
Municipal
Income
Fund, Inc. (1
fund)
(2019 to
present);
RiverNorth
Flexible
Municipal
Income
Fund II, Inc. (1
fund)
(2021 to present);
RiverNorth Managed
Duration
Municipal
Income
Fund II, Inc. (1
fund)
(2022 to present);
RiverNorth Capital and
Income
Fund, Inc. (1
fund)
(2015 to present).
|
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
|
July
31, 2023 (Unaudited) |
|
|
INTERESTED
DIRECTORS AND OFFICERS |
|
|
Name,
Address1
and
Year
of Birth |
Position(s)
Held with
Registrant |
Term of
Office and
Length of
Time
Served |
Principal
Occupation(s)
During
Past
5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other Directorships
Held by the Director
During
the Past 5 Years |
Jerry
R. Raio
(1964)4
|
Interested
Director
|
Current
term
expires
in
2026.
Has
served
since
2019.
|
President,
Arbor Lane
Advisors,
Inc. (Since
2018);
Advisory
Board
Member of
each
of FLX
Distribution,
(2020 to
present);
Quantify
Crypto
(2021 to
present);
ETF Action
(2022
to present);
Qudos
Technologies
(2019
to 2022); Head
of
Capital Markets,
ClickIPO
(2018-2019); Managing
Director,
Head of
Retail
Origination,
Wells
Fargo
Securities,
LLC (2005
to
2018).
|
11 |
RiverNorth/DoubleLine
Strategic
Opportunity
Fund,
Inc. (1 fund)
(2018
to present);
RiverNorth
Funds (3
funds)
(2022 to
present);
RiverNorth
Opportunistic
Municipal
Income
Fund,
Inc. (1 fund)
(2018
to present);
RiverNorth
Managed
Duration
Municipal
Income
Fund, Inc. (1
fund)
(2019 to
present);
RiverNorth
Flexible
Municipal
Income
Fund, Inc. (1
fund)
(2019 to
present);
RiverNorth
Flexible
Municipal
Income
Fund II, Inc. (1
fund)
(2021 to
present);
RiverNorth
Managed
Duration
Municipal
Income Fund
II,
Inc. (1 fund) (2022 to
present);
RiverNorth
Capital
and Income
Fund,
Inc. (1 fund)
(2018
to present). |
Jonathan
M.
Mohrhardt
(1974)
|
Treasurer
and
Chief
Financial
Officer
|
Indefinite. |
President, RiverNorth |
N/A |
N/A |
Has
served
since
2022. |
Capital
Management,
LLC
(since 2020);
Chief
Operating
Officer,
RiverNorth
Capital
Management,
LLC
(2011
to
present).
|
Annual Report | July 31,
2023 |
89 |
RiverNorth
Opportunities Fund, Inc. |
Directors
and Officers |
|
|
|
|
July
31, 2023 (Unaudited) |
INTERESTED
DIRECTORS AND OFFICERS |
|
|
Name,
Address1
and
Year
of Birth |
Position(s)
Held with
Registrant |
Term of
Office and
Length of
Time
Served |
Principal
Occupation(s)
During
Past
5 Years |
Number
of
Funds in
Fund
Complex
Overseen
by
Director2 |
Other Directorships
Held by the Director
During
the Past 5 Years |
Marcus
L.
Collins
(1968)
|
Chief
Compliance
Officer;
Secretary |
Indefinite.
Has
served
since
2022. |
General
Counsel,
RiverNorth
Capital
Management,
LLC
(2012
to present);
Chief
Compliance
Officer,
RiverNorth
Capital
Management,
LLC
(2012
to
present). |
N/A |
N/A |
| 1 | The
mailing address of each Director and officer, unless otherwise noted, is 360 South Rosemary Avenue, Suite 1420, West Palm Beach,
FL 33401. |
| 2 | For
all Directors other than Ms. Mougin, the Fund Complex consists of the RiverNorth Core Opportunity Fund, the RiverNorth/DoubleLine
Strategic Income Fund, and the RiverNorth/Oaktree High Income Fund, each a series of the RiverNorth Funds, RiverNorth Opportunities
Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., RiverNorth Opportunistic Municipal Income Fund, Inc., RiverNorth
Flexible Municipal Income Fund, Inc., RiverNorth Flexible Municipal Income Fund II, Inc., RiverNorth Managed Duration Municipal
Income Fund, Inc., RiverNorth Managed Duration Municipal Income Fund II, Inc. and RiverNorth Capital and Income Fund Inc. For
Ms. Mougin, the Fund Complex consists of the RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity
Fund, Inc., RiverNorth Opportunistic Municipal Income Fund, Inc., RiverNorth Flexible Municipal Income Fund, Inc., RiverNorth
Flexible Municipal Income Fund II, Inc., RiverNorth Managed Duration Municipal Income Fund, Inc., RiverNorth Managed Duration
Municipal Income Fund II, Inc. and RiverNorth Capital and Income Fund, Inc. |
| 3 | Patrick
W. Galley is considered an “Interested” Director as defined in the Investment Company Act of 1940, as amended, because
he is an officer of the Fund and Chief Executive Officer and Chief Investment Officer of the Adviser. |
| 4 | Jerry
Raio is considered an “Interested” Director as defined in the Investment
Company Act of 1940, as amended, because of his current position as an advisory board
member of FLX Distribution, which the Adviser is an investor in and Mr. Galley is a Director
of; and because of his prior position as Managing Director – Head of Retail Origination
at Wells Fargo, which had previously served as a broker and principal underwriter for
certain funds advised by the Adviser. |
The
Statement of Additional Information includes additional information about the Fund’s Directors and is available, without
charge, upon request by calling (toll-free) 1-888-848-7569.
RiverNorth Opportunities Fund, Inc. |
Data Privacy Policies and Procedures |
FACTS |
WHAT DOES RIVERNORTH OPPORTUNITIES FUND DO WITH YOUR PERSONAL INFORMATION? |
WHY? |
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but
not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please
read this notice carefully to understand what we do. |
WHAT? |
The types of personal information we collect and share depend on the product or service you have with us. This information
can include: |
|
●
Social Security number
●
Assets
●
Retirement Assets
●
Transaction History
●
Checking Account Information
|
●
Purchase History
●
Account Balances
●
Account Transactions
●
Wire Transfer Instructions |
|
When
you are no longer our customer, we continue to share your information as described in this notice. |
HOW? |
All financial companies need to share customers’ personal information to run their everyday business. In the section
below, we list the reasons financial companies can share their customers’ personal information; the reasons RiverNorth
Opportunities Fund chooses to share; and whether you can limit this sharing. |
REASONS
WE CAN SHARE YOUR
PERSONAL INFORMATION |
DOES
RIVERNORTH
OPPORTUNITIES
INCOME FUND
SHARE? |
CAN
YOU
LIMIT THIS
SHARING? |
For
our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report
to credit bureaus |
Yes |
No |
For
our marketing purposes – to offer our products and services to you |
No |
We
don't share |
For
joint marketing with other financial companies |
No |
We
don't share |
For
our affiliates’ everyday business purposes – information about your transactions and experiences |
No |
We
don't share |
For
our affiliates’ everyday business purposes – information about your creditworthiness |
No |
We
don't share |
For
nonaffiliates to market to you |
No |
We
don't share |
QUESTIONS? |
Call 1-(844)-569-4750 |
|
|
|
|
|
|
Annual Report | July 31, 2023 |
91 |
RiverNorth Opportunities
Fund, Inc. |
Data Privacy
Policies and Procedures |
WHO
WE ARE |
|
Who
is providing this notice? |
RiverNorth
Opportunities Fund |
WHAT
WE DO |
|
How
does RiverNorth Opportunities Fund protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law.
These measures include computer safeguards and secured files and buildings.
Our
service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic
personal information. |
How
does RiverNorth Opportunities Fund collect my personal information? |
We
collect your personal information, for example, when you
●
Open an account
●
Provide account information
●
Give us your contact information
●
Make deposits or withdrawals from your account
●
Make a wire transfer
●
Tell us where to send the money
●
Tells us who receives the money
●
Show your government-issued ID
●
Show your driver’s license
We
also collect your personal information from other companies. |
Why
can’t I limit all sharing? |
Federal
law gives you the right to limit only:
●
Sharing for affiliates’ everyday business purposes – information about your creditworthiness
●
Affiliates from using your information to market to you
●
Sharing for nonaffiliates to market to you
State
laws and individual companies may give you additional rights to limit sharing. |
DEFINITIONS |
|
Affiliates |
Companies
related by common ownership or control. They can be financial and nonfinancial companies.
●
RiverNorth Opportunities Fund does not share with our affiliates for marketing purposes. |
Nonaffiliates |
Companies
not related by common ownership or control. They can be financial and nonfinancial companies.
●
RiverNorth Opportunities Fund does not share with nonaffiliates so they can market to you. |
Joint
marketing |
A
formal agreement between nonaffiliated financial companies that together market financial products or services to you.
●
RiverNorth Opportunities Fund does not jointly market. |
Board
of Directors
Patrick
W. Galley, CFA, Chairman
John
K. Carter
J.
Wayne Hutchens
David
M. Swanson
Jerry
R. Raio
Lisa
B. Mougin
Investment
Adviser
RiverNorth
Capital Management, LLC
Fund
Administrator
ALPS
Fund Services, Inc.
Transfer
Agent and
Dividend
Disbursing Agent
DST
Systems, Inc.
Custodian
State
Street Bank and Trust Company
Independent
Registered
Public
Accounting Firm
Cohen
& Company, Ltd.
![](https://www.sec.gov/Archives/edgar/data/1501072/000139834423019035/fp0085332-1_05.jpg)
RiverNorth
Capital Management, LLC
360
South Rosemary Avenue, Suite 1420
West
Palm Beach, FL 33401
Secondary
market support provided to the Fund by ALPS Fund Services, Inc.’s affiliate ALPS Distributors, Inc., a FINRA member.
This
report is provided for the general information of the shareholders of the RiverNorth Opportunities Fund, Inc. This report is not
intended for distribution to prospective investors in the Fund, unless preceded or accompanied by an effective prospectus.
| (a) | The
RiverNorth Opportunities Fund, Inc. (the “Fund” or the “Registrant”),
as of the end of the period covered by the report, has adopted a Code of Ethics that
applies to the Registrant’s Principal Executive Officer, Principal Financial Officer,
Principal Accounting Officer or Controller or any persons performing similar functions
on behalf of the Registrant. |
| (c) | During
the period covered by this report, no amendments were made to the provisions of the Code
of Ethics referenced in 2 (a) above. |
| (d) | During
the period covered by this report, no implicit or explicit waivers to the provision of
the Code of Ethics referenced in 2 (a) above were granted. |
| (f) | The
Registrant’s Code of Ethics is attached as Exhibit 13(a)(1) hereto. |
| Item
3. | Audit
Committee Financial Expert. |
The
Registrant’s Board of Directors has determined that the Registrant has as least one audit committee financial expert serving
on its Audit Committee. The Board of Directors has designated J. Wayne Hutchens as the Registrant’s “audit committee
financial expert.” Mr. Hutchens is “independent” as defined in paragraph (a)(2) of Item 3 to Form N-CSR.
| Item
4. | Principal
Accountant Fees and Services. |
| (a) | Audit
Fees: For the registrant’s fiscal years ended July 31, 2022 and July 31, 2023,
the aggregate fees billed for professional services rendered by Cohen & Company,
Ltd. (“Cohen”) for the audit of the Registrant’s annual financial statements
or services that are normally provided by the accountant in connection with statutory
and regulatory filings or engagements were $30,000 and $30,000, respectively. |
| (b) | Audit-Related
Fees: For the registrant’s fiscal years ended July 31, 2022 and July 31, 2023,
the aggregate fees billed for assurance and related services by Cohen that are reasonably
related to the performance of the audit of the Registrant’s financial statements
and are not reported under paragraph (a) of this Item were $25,047 and $4,248, respectively. This
fee is comprised of fees relating to auditor consents provided for U.S. Securities and
Exchange Commission filings for various offerings. |
| (c) | Tax
Fees: For the registrant’s fiscal years ended July 31, 2022 and July 31, 2023,
the aggregate fees billed for professional services rendered by Cohen for tax compliance,
tax advice, and tax planning were $16,450 and $16,825, respectively. These fees are comprised
of fees relating income tax return preparation fees, excise tax return preparation fees
and review of dividend distribution calculation fees. |
| (d) | All
Other Fees: For the registrant’s fiscal years ended July 31, 2022 and July
31, 2023, the aggregate fees billed for products and services provided by Cohen, other
than the services reported in paragraphs (a) through (c) of this Item were $0 and
$0, respectively. |
| (e)(1) | Audit
Committee Pre-Approval Policies and Procedures: All services to be performed by the
Registrant’s principal auditors must be pre-approved by the Registrant’s
Audit Committee or by the Audit Committee’s designee pursuant to the Audit Committee’s
Pre-Approval Policies and Procedures. |
| (e)(2) | No
services described in paragraphs (b) through (d) were approved pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
| (g) | The
aggregate non-audit fees billed by the Registrant’s accountant for services rendered
to the Registrant, and rendered to the Registrant’s investment adviser, and any
entity controlling, controlled by, or under common control with the investment adviser
that provides ongoing services to the Registrant for the fiscal years ended July 31,
2022 and July 31, 2023 were $0 and $0, respectively. For the fiscal years ended July
31, 2022 and July 31, 2023, Cohen did not bill the Registrant for products and services
other than the services reported above. |
| Item
5. | Audit
Committee of Listed Registrants. |
The
Registrant has a separately designated standing Audit Committee established in accordance with Section 3 (a)(58)(A) of the Securities
Exchange Act of 1934, as amended (the “1934 Act”) and is comprised of the following members:
J.
Wayne Hutchens, Chairman
John
K. Carter
Lisa
B. Mougin
David
M. Swanson
| Item
6. | Schedule
of Investments. |
| (a) | Schedule
of Investments is included as part of the Report to Stockholders filed under Item 1(a)
of this form. |
| (b) | Not
applicable to the Registrant. |
| Item
7. | Disclosure
of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Attached,
as Exhibit 13(c), is a copy of the proxy voting policies and procedures of the Registrant.
| Item
8. | Portfolio
Managers of Closed-End Management Investment Companies. |
| (a)(1) | As
of the filing date of this report on Form N-CSR, the portfolio managers of the Fund are
as follows: |
Patrick
W. Galley, CFA
Mr.
Galley has served as a portfolio manager of the Fund since its inception. Mr. Galley is the Chief Executive Officer and Chief
Investment Officer for the Adviser. Mr. Galley heads the research and investment team at RiverNorth Capital Management, LLC (the
“Adviser”) and oversees all portfolio management activities at the Adviser. Mr. Galley also serves as the President
and Chairman of all of the Adviser’s proprietary registered open- and closed-end funds. Prior to joining the Adviser in
2004, he was most recently a Vice President at Bank of America in the Global Investment Bank’s Portfolio Management group,
where he specialized in analyzing and structuring corporate transactions for investment management firms in addition to closed-end
and open-end funds, hedge funds, funds of funds, structured investment vehicles and insurance/reinsurance companies. Mr. Galley
graduated with honors from Rochester Institute of Technology with a B.S. in Finance. He has received the Chartered Financial Analyst
(CFA) designation, is a member of the CFA Institute and is a member of the CFA Society of Chicago.
Stephen
O’Neill, CFA
Mr.
O’Neill has served as a portfolio manager of the Fund since its inception. Mr. O’Neill is a Portfolio Manager for
the Adviser. Mr. O’Neill conducts qualitative and quantitative analysis of closed-end funds and their respective asset classes.
Prior to joining the Adviser in 2007, he was most recently an Assistant Vice President at Bank of America in the Global Investment
Bank’s Portfolio Management group. At Bank of America, he specialized in the corporate real estate, asset management, and
structured finance industries. Mr. O’Neill graduated magna cum laude from Miami University in Oxford, Ohio with a B.S. in
finance and a minor in economics. Mr. O’Neill has received the Chartered Financial Analyst (CFA) designation, is a member
of the CFA Institute and is a member of the CFA Society of Chicago.
| (a)(2) | As
of July 31, 2023, the portfolio managers of the Fund were responsible for the management
of the following other accounts (in addition to the Fund): |
Number
of Other Accounts Managed and Assets by Account Type As of July 31, 2023 |
Portfolio
Manager |
Registered
Investment Companies (other than the Fund) |
Registered
Investment Companies Subject to Performance-Based Advisory Fees |
Other
Pooled Investment Vehicles |
Other
Pooled Investment Vehicles Subject to Performance-Based Advisory Fees |
Other
Accounts |
Other
Accounts Subject to Performance-Based Advisory Fees |
Patrick
W. Galley, CFA |
13
$3.65B |
0
$0 |
4
$961M |
4
$961M |
10
$90.4M |
10
$90.4M |
Stephen
O’Neill, CFA |
11
$3.64B |
0
$0 |
4
$961M |
4
$961M |
10
$90.4M |
10
$90.4M |
| (a)(3) | Compensation
of Portfolio Managers and Material Conflicts of Interest |
Adviser
Compensation
As
of July 31, 2023, Messrs. Galley’s and O’Neill’s total compensation package, like others in the Adviser’s
business, is a package designed to attract and retain investment professionals. The compensation package includes a base salary
fixed from year to year. The amount of the base salary is assessed for its competitiveness in the industry and geographic location
of the Adviser. The compensation package also provides for an annual but variable performance bonus. The performance bonus reflects
individual performance of the portfolio manager in his or her allocated duties and responsibilities. While performance of the
funds managed by the portfolio manager is considered in determining the annual performance bonus, it is but one factor. The overall
success of the Adviser in its business objectives and the performance of the Adviser’s business as a whole are more important
factors than the investment performance of a particular fund or account. Messrs. Galley and O’Neill also participate in
a 401K program on the same basis as other officers of the Adviser, which includes matching of employee contributions up to a certain
percent of the portfolio manager’s base salary. Those portfolio managers that are also equity stakeholders in the Adviser
or its affiliates may also receive periodic distribution of profits from business operations.
Conflicts
of Interest
Actual
or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to
more than one fund or other accounts. More specifically, portfolio managers who manage multiple funds are presented with the following
potential conflicts, among others.
The
management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each
account. The management of multiple funds and accounts also may give rise to potential conflicts of interest if the funds and
accounts have different objectives, benchmarks, time horizons and fees as the portfolio manager must allocate his time and investment
ideas across multiple funds and accounts. Another potential conflict of interest may arise where another account has the same
or similar investment objective as the Fund, whereby the portfolio manager could favor one account over another.
With
respect to securities transactions for the Fund, the Adviser determines which broker to use to execute each order, consistent
with the duty to seek best execution of the transaction. A portfolio manager may execute transactions for another fund or account
that may adversely impact the value of securities held by the Fund. Securities selected for funds or accounts other than the Fund
may outperform the securities selected for the Fund. Further, a potential conflict could include a portfolio manager’s knowledge
about the size, timing and possible market impact of Fund trades, whereby they could use this information to the advantage of
other accounts and to the disadvantage of the Fund. These potential conflicts of interest could create the appearance that a portfolio
manager is favoring one investment vehicle over another.
The
management of personal accounts also may give rise to potential conflicts of interest. Although the portfolio manager generally
does not trade securities in his or her own personal account, the Adviser and the Fund have each adopted a code of ethics that,
among other things, permits personal trading by employees (including trading in securities that can be purchased, sold or held
by the Fund) under conditions where it has been determined that such trades would not adversely impact client accounts. Nevertheless,
the management of personal accounts may give rise to potential conflicts of interest, and there is no assurance that these codes
of ethics will adequately address such conflicts.
The
Adviser has adopted certain compliance procedures which are designed to address these types of conflicts. However, there is no
guarantee that such procedures will detect each and every situation in which a conflict arises.
| (a)(4) | Portfolio
Manager Ownership of Fund Shares |
The
following table shows the dollar range of equity securities of the Fund beneficially owned by the portfolio managers of the Fund
as of July 31, 2023.
Name
of Portfolio Manager |
Dollar
Range of Equity Securities of the Fund |
Patrick
W. Galley, CFA |
Over
$1,000,000 |
Stephen
O’Neill, CFA |
$500,001
- $1,000,000 |
| Item
9. | Purchases
of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not
applicable, due to no such purchases occurring during the period covered by this report.
| Item
10. | Submission
of Matters to a Vote of Security Holders. |
There
have been no material changes to the procedures by which shareholders may recommend nominees to the Board of Directors of the
Registrant.
| Item
11. | Controls
and Procedures. |
| (a) | The
Registrant’s Principal Executive Officer and Principal Financial Officer have concluded
that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940, as amended (the “1940 Act”)) are
effective based on their evaluation of these controls and procedures, required by Rule
30a-3(b) under the 1940 Act and Rules 13a-15(b) under the 1934 Act, as of a date within
90 days of the filing date of this document. |
| (b) | There
were no changes in the Registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) during the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the Registrant’s
internal control over financial reporting. |
| Item
12. | Disclosure
of Securities Lending Activities for Closed-End Management Investment Companies. |
Not
applicable.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant:
RiverNorth Opportunities Fund, Inc.
By: |
/s/
Patrick W. Galley |
|
Name: |
Patrick W. Galley |
|
Title: |
President |
|
|
|
|
Date: |
October 6, 2023 |
|
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: |
/s/
Patrick W. Galley |
|
Name: |
Patrick W. Galley |
|
Title: |
President |
|
|
|
|
Date: |
October 6, 2023 |
|
By: |
/s/ Jonathan M. Mohrhardt |
|
Name: |
Jonathan M. Mohrhardt |
|
Title: |
Treasurer and Chief Financial Officer |
|
|
|
|
Date: |
October 6, 2023 |
|
16.4 Code
of Ethics – Principal Executive and Senior Officers
I. Covered
Officers/Purpose of the Code
This
code of ethics (this “Code”) for the Trust applies to the Trust’s Principal Executive Officer and Principal
Financial Officer (the “Covered Officers” each of whom is set forth in Exhibit A) for the purpose of promoting:
| ● | honest
and ethical conduct, including the ethical handling of actual or apparent conflicts of
interest between personal and professional relationships; |
| ● | full,
fair, accurate, timely and understandable disclosure in reports and documents that the
Trust files with, or submits to, the SEC and in other public communications made by the
Trust; |
| ● | compliance
with applicable laws and governmental rules and regulations; |
| ● | the
prompt internal reporting of violations of this Code to an appropriate person or persons
identified in this Code; and |
| ● | accountability
for adherence to this Code. |
Each
Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to
actual as well as apparent conflicts of interest.
II. Covered
Officers Should Handle Ethically Actual and Apparent Conflicts of Interest
Overview.
A “conflict of interest” occurs when a Covered Officer’s private interests interfere with the interests
of, or the Covered Officer’s service to, the Trust. For example, a conflict of interest would arise if a Covered Officer,
or a member of the Covered Officer’s family, receives improper personal benefits as a result of the Covered Officer’s
position with the Trust.
Certain conflicts of interest arise out of the relationships between Covered Officers and the Trust and already are subject
to conflict of interest provisions in the 1940 Act and the Investment Advisers Act of 1940 (“Investment Advisers
Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale
of securities or other property) with the Trust because of their status as “affiliated persons” of the Trust.
This Code does not, and is not intended to, repeat or replace any compliance programs and procedures of the Trust or the
investment adviser designed to prevent, or identify and correct, violations of the 1940 Act and the Investment Advisers
Act.
Although
typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual
relationship between the Trust and the investment adviser or the administrator of which a Covered Officer is also an officer or
employee. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties, whether formally
for the Trust and/or for the adviser or the administrator, be involved in establishing policies and implementing decisions that
will have different effects on the adviser or the administrator and the Trust. The participation of the Covered Officers in such
activities is inherent in the contractual relationship between the Trust and the adviser or the administrator and is consistent
with the performance by the Covered Officers of their duties as officers of the Trust. Thus, if performed in conformity with the
provisions of the 1940 Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In
addition, it is recognized by the Trust’s Board of Trustees (“Board”) that the Covered Officers may also be
officers or employees of one or more investment companies covered by other codes.
Other
conflicts of interest are covered by this Code, even if such conflicts of interest are not subject to provisions in the 1940 Act
and the Investment Advisers Act. The following list provides examples of conflicts of interest under this Code, but Covered Officers
should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered
Officer should not be placed improperly before the interest of the Trust.
Policies
and Procedures Database - RiverNorth Opportunistic Municipal Income Fund
Each
Covered Officer must:
| ● | not
use personal influence or personal relationships improperly to influence investment decisions
or financial reporting by the Trust whereby the Covered Officer would benefit personally
to the detriment of the Trust; |
| ● | not
cause the Trust to take action, or fail to take action, for the individual personal benefit
of the Covered Officer rather than the benefit of the Trust; |
| ● | not
use material non-public knowledge of portfolio transactions made or contemplated for
the Trust to trade personally or cause others to trade personally in contemplation of
the market effect of such transactions; |
| ● | report
at least annually any affiliations or other relationships related to conflicts of interest
that the Trust’s
Trustees and Officers Questionnaire covers. |
There
are some conflict of interest situations that should always be discussed with the compliance officer of the Trust appointed by
the Board (the “Compliance Officer”), if material. Examples of these include:
| ● | service
as a director on the board of any public company; |
| ● | the
receipt of any non-nominal gifts; |
| ● | the
receipt of any entertainment from any company with which the Company has current or prospective
business dealings unless such entertainment is business-related, reasonable in cost,
appropriate as to time and place, and not so frequent as to raise any questions of impropriety;
|
| ● | any
ownership interest in, or any consulting or employment relationship with, any of the
Trust’s service providers, other than its investment adviser, principal underwriter,
administrator or any affiliated person thereof; and |
| ● | a
direct or indirect financial interest in commissions, transaction charges or spreads
paid by the Trust for effecting portfolio transactions or for selling or redeeming shares
other than an interest arising from the Covered Officer’s employment, such as compensation
or equity ownership. |
III. Disclosure and Compliance
| ● | Each
Covered Officer should familiarize himself with the disclosure requirements generally
applicable to the Trust. |
| ● | Each
Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts
about the Trust to others, whether within or outside the Trust, including to the Trust’s
directors and auditors, and to governmental regulators and self-regulatory organizations.
|
| ● | Each
Covered Officer should, to the extent appropriate within the Covered Officer’s
area of responsibility, consult with other officers and employees of the Trust and of
the adviser or the administrator with the goal of promoting full, fair, accurate, timely
and understandable disclosure in the reports and documents the Trust files with, or submits
to, the SEC and in other public communications made by the Trust. |
| ● | It
is the responsibility of each Covered Officer to promote compliance with the standards
and restrictions imposed by applicable laws, rules and regulations. |
Policies
and Procedures Database - RiverNorth Opportunistic Municipal Income Fund
IV. Reporting
and Accountability
Each
Covered Officer must:
| ● | upon
adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer),
affirm in writing to the Board , in substantially the form set forth on Exhibit B, that the Covered Officer has received, read, and understands this Code; |
| ● | annually
thereafter affirm to the Board, in substantially the form set forth on Exhibit C, that the Covered Officer has
complied with the requirements of this Code; |
| ● | not
retaliate against any other Covered Officer or any employee of the Trust or their affiliated
persons for reports of potential violations that are made in good faith; and |
| ● | notify
the Compliance Officer for the Trust promptly if the Covered Officer knows of any violation
of this Code. Failure to do so is itself a violation of this Code. |
The
Compliance Officer for the Trust is responsible for applying this Code to specific situations in which questions are presented
under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by
a Covered Officer will be considered by the Audit Committee (the “Committee”),
which will make recommendations to the Board.
The
Trust will follow these procedures in investigating and enforcing this Code:
| ● | the
Compliance Officer for the Trust will take all appropriate action to investigate any
potential violations reported to the Compliance Officer; |
| ● | the
Compliance Officer will review with the outside legal counsel to the Trust the findings
and conclusions of such investigation; |
| ● | if,
after such investigation and review, the Compliance Officer believes that no violation
has occurred, the Compliance Officer is not required to take any further action; |
| ● | any
matter that the Compliance Officer believes is a violation will be reported to the Committee;
|
| ● | if
the Committee concurs that a violation has occurred, it will inform and make a recommendation
to the Board, which will consider appropriate action, which may include review of, and
appropriate modifications to, applicable policies and procedures (including changes to
this Code); notification of the violation to appropriate personnel of the investment
adviser or the administrator or its board; or a recommendation to take disciplinary action
against the Covered Officer, which may include, without limitation, dismissal; |
| ● | the
Board will be responsible for granting waivers, as appropriate; and |
| ● | any
changes to or waivers of this Code will, to the extent required, be disclosed as provided
by SEC rules. |
V. Other Policies and Procedures
This
Code shall be the sole code of ethics adopted by the Trust for purposes of Section 406 of the Sarbanes-Oxley Act and the rules
and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Trust, the
Trust’s adviser, principal underwriter, the administrator or other service providers govern or purport to govern the behavior
or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap
or conflict with the provisions of this Code. The Trust’s and its investment adviser’s and principal underwriter’s
codes of ethics under Rule 17j-1 under the 1940 Act are separate requirements applying to the Covered Officers and others, and
are not part of this Code.
Policies
and Procedures Database - RiverNorth Opportunistic Municipal Income Fund
VI. Amendments
Any
amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including
a majority of independent trustees.
VII. Confidentiality
To
the extent possible, all records, reports and other information prepared, maintained or acquired pursuant to this Code will be
treated as confidential, it being understood that it may be necessary or advisable, that certain matters be disclosed to third
parties (e.g., to the board of directors or officers of the adviser or the administrator).
VIII. Internal
Use
This
Code is intended solely for the internal use by the Trust and does not constitute an admission, by or on behalf of the Trust,
as to any fact, circumstance, or legal conclusion.
Responsible
Party/Compliance Process: Chief Compliance Officer
Exhibit
A
Persons
Covered by this Code of Ethics
Patrick
Galley
Jon
Mohrhardt
EX-99.CERT
CERTIFICATIONS
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY
ACT OF 2002
I,
Patrick W. Galley, certify that:
| 1. | I
have reviewed this report on Form N-CSR of RiverNorth Opportunities Fund, Inc.; |
| 2. | Based
on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report; |
| 3. | Based
on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results
of operations, changes in net assets, and cash flows (if the financial statements are
required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
| 4. | The
registrant’s other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940) and internal control over financial reporting (as
defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have: |
| a. | Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared; |
| b. | Designed
such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles; |
| c. | Evaluated
the effectiveness of the registrant’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of a date within 90 days prior to the filing date of this report based
on such evaluation; and |
| d. | Disclosed
in this report any change in the registrant’s internal control over financial reporting
that occurred during the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant’s internal control
over financial reporting; and |
| 5. | The
registrant’s other certifying officer(s) and I have disclosed to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions): |
| a. | all
significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize, and report financial information;
and |
| b. | any
fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant’s internal control over financial reporting. |
By: |
/s/
Patrick W. Galley |
|
Name: |
Patrick
W. Galley |
|
Title: |
President |
|
|
|
|
Date: |
October
6, 2023 |
|
I,
Jonathan M. Mohrhardt, certify that:
| 1. | I
have reviewed this report on Form N-CSR of RiverNorth Opportunities Fund, Inc.; |
| 2. | Based
on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report; |
| 3. | Based
on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results
of operations, changes in net assets, and cash flows (if the financial statements are
required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
| 4. | The
registrant’s other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940) and internal control over financial reporting (as
defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have: |
| a. | Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared; |
| b. | Designed
such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles; |
| c. | Evaluated
the effectiveness of the registrant’s disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of a date within 90 days prior to the filing date of this report based
on such evaluation; and |
| d. | Disclosed
in this report any change in the registrant’s internal control over financial reporting
that occurred during the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant’s internal control
over financial reporting; and |
| 5. | The
registrant’s other certifying officer(s) and I have disclosed to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions): |
| a. | all
significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize, and report financial information;
and |
| b. | any
fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant’s internal control over financial reporting. |
By: |
/s/
Jonathan M. Mohrhardt |
|
|
Jonathan
M. Mohrhardt |
|
|
Treasurer
and Chief Financial Officer |
|
|
|
|
Date: |
October
6, 2023 |
|
EX-99.906CERT
CERTIFICATIONS
PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY
ACT OF 2002
This
certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the
report on Form N-CSR for the period ended July 31, 2023 of RiverNorth Opportunities Fund, Inc. (the “Company”).
I,
Patrick W. Galley, the President of the Company, certify that:
| (i) | the
report on Form N-CSR fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d));
and |
| (ii) | the
information contained in the Form N-CSR fairly presents, in all material respects, the
financial condition and results of operations of the Company. |
Dated: |
October
6, 2023 |
|
|
|
|
By: |
/s/
Patrick W. Galley |
|
|
Patrick
W. Galley |
|
|
President |
|
This
certification is furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the
report on Form N-CSR for the period ended July 31, 2023 of RiverNorth Opportunities Fund, Inc. (the “Company”).
I,
Jonathan M. Mohrhardt, the Treasurer and Chief Financial Officer of the Company, certify that:
| (i) | the
report on Form N-CSR fully complies with the requirements of Section 13(a) or Section
15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d));
and |
| (ii) | the
information contained in the Form N-CSR fairly presents, in all material respects, the
financial condition and results of operations of the Company. |
Dated: |
October
6, 2023 |
|
|
|
|
By: |
/s/
Jonathan M. Mohrhardt |
|
|
Jonathan
M. Mohrhardt |
|
|
Treasurer
and Chief Financial Officer |
|
These
statements accompany this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed
as filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934.
RiverNorth Combined Closed-End Fund Board Meetings - Combined Board of Directors Agenda Items
Section
18 - Proxy Voting
RiverNorth
Capital Management, LLC
PROXY
VOTING POLICIES AND PROCEDURES
Pursuant
to the recent adoption by the Securities and Exchange Commission (the “Commission”) of Rule 206(4)-6 (17 CFR
275.206(4)-6) and amendments to Rule 204-2 (17 CFR 275.204-2) under the Investment Advisers Act of 1940 (the
“Act”), it is a fraudulent, deceptive, or manipulative act, practice or course of business, within the meaning of
Section 206(4) of the Act, for an investment adviser to exercise voting authority with respect to client securities, unless
(i) the adviser has adopted and implemented written policies and procedures that are reasonably designed to ensure that the
adviser votes proxies in the best interests of its clients, (ii) the adviser describes its proxy voting procedures to its
clients and provides copies on request, and (iii) the adviser discloses to clients how they may obtain information on how the
adviser voted their proxies.
In
its standard investment advisory agreement, RiverNorth Capital Management, LLC (RiverNorth Capital) specifically states that
it does not vote proxies unless otherwise directed by the client and the client, including clients governed by ERISA,
is responsible for voting any proxies. Therefore, RiverNorth Capital will not vote proxies for these clients. However,
RiverNorth Capital will vote proxies on behalf of investment company clients and hedge fund clients ("Funds").
RiverNorth Capital has instructed all custodians, other than Fund custodians, to forward proxies directly to its clients,
and if RiverNorth Capital accidentally receives a proxy for any non-Fund client, current or former, the Chief Compliance
Officer will promptly forward the proxy to the client. In order to fulfill its responsibilities to Funds, RiverNorth
Capital Management, LLC (hereinafter “we” or “our”) has adopted the following policies and procedures
for proxy voting with regard to companies in any Fund's investment portfolios.
OVERVIEW
________The
Proxy Voting Policies and Procedures are designed to protect the best interests of the Funds in which we vote proxies on
behalf of. RiverNorth does not delegate or rely on any third-party service provider for voting recommendations.
KEY
OBJECTIVES
The
key objectives of these policies and procedures recognize that a company’s management is entrusted with the day-to-day operations
and longer term strategic planning of the company, subject to the oversight of the company’s board of directors. While “ordinary
business matters” are primarily the responsibility of management and should be approved solely by the corporation’s
board of directors, these objectives also recognize that the company’s shareholders must have final say over how management
and directors are performing, and how shareholders’ rights and ownership interests are handled, especially when matters
could have substantial economic implications to the shareholders.
Therefore,
we will pay particular attention to the following matters in exercising our proxy voting responsibilities as a
fiduciary for clients and the Funds:
Accountability.
Each company should have effective means in place to hold those entrusted with running a company’s business accountable
for their actions. Management of a company should be accountable to its board of directors and the board should be accountable
to shareholders.
Alignment
of Management and Shareholder Interests. Each company should endeavor to align the interests of management and the board
of directors with the interests of the company’s shareholders. For example, we generally believe that compensation
should be designed to reward management for doing a good job of creating value for the shareholders of the
company.
RiverNorth Combined Closed-End Fund Board Meetings - Combined Board of Directors Agenda Items
Transparency.
Promotion of timely disclosure of important information about a company’s business operations and financial
performance enables investors to evaluate the performance of a company and to make informed decisions about the purchase and
sale of a company’s securities.
DECISION
METHODS
We
generally believe that the individual portfolio managers that invest in and track particular companies are the most
knowledgeable and best suited to make decisions with regard to proxy votes. Therefore, we rely on those individuals to make
the final decisions on how to cast proxy votes.
No
set of proxy voting guidelines can anticipate all situations that may arise. In special cases, we may seek insight from our
managers and analysts on how a particular proxy proposal will impact the financial prospects of a company, and vote
accordingly.
In
some instances, a proxy vote may present a conflict between the interests of a client/fund, on the one hand, and our
interests or the interests of a person affiliated with us, on the other. In such a case, we will abstain from making a voting
decision and will forward all of the necessary proxy voting materials to the client to enable the client to cast the
votes.
Notwithstanding
the forgoing, the following policies will apply to investment company shares owned by a Fund. The Investment Company Act of
1940, as amended, (the “Act”) defines an “investment company” to include mutual funds, money market
funds, closed-end funds (including preferred shares of a closed-end fund), and exchange traded funds. Under Section 12(d)(1) of the Act, a fund may only invest up to 5% of its total assets in the securities of any one investment company, but may
not own more than 3% of the outstanding voting stock of any one investment company or invest more than 10% of its total
assets in the securities of other investment companies. However, Section 12(d)(1)(F) of the Act provides that the
provisions of paragraph 12(d)(1) shall not apply to securities purchased or otherwise acquired by a fund if (i) immediately
after such purchase or acquisition not
more than 3% of the total outstanding stock of such registered investment company is owned by the fund and all affiliated
persons of the fund; and (ii) the fund is not proposing to offer or sell any security issued by it through a principal
underwriter or otherwise at a public or offering price which includes a sales load of more than 1½% percent.
Therefore, each Fund (or the Adviser acting on behalf of the Fund) must comply with the following voting restrictions unless
it is determined that the Fund is not relying on Section 12(d)(1)(F):
| ● | when
the Fund exercises voting rights, by proxy or otherwise, with respect to any investment
company owned by the Fund, the Fund will either |
| ○ | seek
instruction from the Fund’s shareholders with regard to the voting of all proxies
and vote in accordance with such instructions, or |
| ○ | vote
the shares held by the Fund in the same proportion as the vote of all other holders of
such security. |
PROXY
VOTING GUIDELINES
Election
of the Board of Directors
We
believe that good corporate governance generally starts with a board composed primarily of independent directors, unfettered
by significant ties to management, all of whose members are elected annually. We also believe that turnover in board
composition promotes independent board action; fresh approaches to governance, and generally has a positive impact on
shareholder value. We will generally vote in favor of non-incumbent independent directors.
The
election of a company’s board of directors is one of the most fundamental rights held by shareholders. Because a
classified board structure prevents shareholders from electing a full slate of directors annually, we will generally
support efforts to declassify boards or other measures that permit shareholders to remove a majority of directors at any
time, and will generally oppose efforts to adopt classified board structures.
RiverNorth Combined Closed-End Fund Board Meetings - Combined Board of Directors Agenda Items
Approval
of Independent Auditors
We
believe that the relationship between a company and its auditors should be limited primarily to the audit engagement, although
it may include certain closely related activities that do not raise an appearance of impaired independence.
We
will evaluate on a case-by-case basis instances in which the audit firm has a substantial non-audit relationship with a
company to determine whether we believe independence has been, or could be, compromised.
Equity-based
compensation plans
We
believe that appropriately designed equity-based compensation plans, approved by shareholders, can be an effective way to align
the interests of shareholders and the interests of directors, management, and employees by providing incentives to increase shareholder
value. Conversely, we are opposed to plans that substantially dilute ownership interests in the company, provide participants
with excessive awards, or have inherently objectionable structural features.
We
will generally support measures intended to increase stock ownership by executives and the use of employee stock purchase plans
to increase company stock ownership by employees. These may include:
| 1. | Requiring
senior executives to hold stock in a company. |
| 2. | Requiring
stock acquired through option exercise to be held for a certain period of time. |
These
are guidelines, and we consider other factors, such as the nature of the industry and size of the company, when assessing a plan’s
impact on ownership interests.
Corporate
Structure
We
view the exercise of shareholders’ rights, including the rights to act by written consent, to call special
meetings and to remove directors, to be fundamental to good corporate governance.
Because
classes of common stock with unequal voting rights limit the rights of certain shareholders, we generally believe that shareholders
should have voting power equal to their equity interest in the company and should be able to approve or reject changes to a company’s
by-laws by a simple majority vote.
We
will generally support the ability of shareholders to cumulate their votes for the election of directors.
Shareholder
Rights Plans
While
we recognize that there are arguments both in favor of and against shareholder rights plans, also known as poison pills,
such measures may tend to entrench current management, which we generally consider to have a negative impact on shareholder
value. Therefore, while we will evaluate such plans on a case by case basis, we will generally oppose such plans.
RiverNorth Combined Closed-End Fund Board Meetings - Combined Board of Directors Agenda Items
PROXY
SERVICE PROVIDER OVERSIGHT
_________We
use Broadridge as our third-party service provider for voting proxies. Broadridge, as a RiverNorth service provider, is monitored
by RiverNorth through its proxy service and undergoes an initial and annual due diligence review.
The
initial due diligence of a third-party service provider for proxy services includes a review of the service
provider’s compliance policies and procedures, records of any administrative proceedings against the firm, interview
with key personnel, review the information technology and cybersecurity controls in place to protect vital data and
discussions with other clients of the service provider.
For
annual due diligence, RiverNorth requires its third-party service provider for proxy services to complete a Due Diligence Questionnaire
(DDQ). As with the initial due diligence, the DDQ will cover the service provider’s compliance policies and procedures,
records of any administrative proceedings against the firm and information technology and cybersecurity controls in place to
protect vital data. It will also include an evaluation of any material changes in services or operations of the third-party
service provider for proxy services.
CLIENT
INFORMATION
A
copy of these Proxy Voting Policies and Procedures is available to our clients, without charge, upon request, by calling
1-800-646-0148. We will send a copy of these Proxy Voting Policies and Procedures within three business days of receipt of
a request, by first-class mail or other means designed to ensure equally prompt delivery. In addition, we will provide
each client, without charge, upon request, information regarding the proxy votes cast by us with regard to the
client’s securities.
TESTING
PROCEDURES
On
a monthly basis, the Chief Compliance Officer or his designee shall obtain periodic affirmations from employees responsible for
voting proxies that all outstanding proxies for the prior month have been voted. On a periodic basis, the Chief Compliance Officer
or his designee shall review a sample of all proxies for compliance with these procedures.
| Revised |
| 2/12/2013
11/7/2014
7/1//2021 |
4
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We hereby consent to the incorporation by reference
in the Registration Statement on Form N-2 (No. 333-261239) of our report dated September 28, 2023, relating to the financial statements
and financial highlights of RiverNorth Opportunities Fund, Inc., which appear in this Form N-CSR.
/s/Cohen & Company, Ltd
Cohen & Company, Ltd.
Cleveland, Ohio
October 6, 2023
v3.23.3
N-2 - USD ($)
|
3 Months Ended |
12 Months Ended |
Jul. 31, 2023 |
Apr. 30, 2023 |
Jan. 31, 2023 |
Oct. 31, 2022 |
Jul. 31, 2022 |
Apr. 30, 2022 |
Jan. 31, 2022 |
Oct. 31, 2021 |
Jul. 31, 2021 |
Apr. 30, 2021 |
Jan. 31, 2021 |
Jul. 31, 2023 |
Cover [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity Central Index Key |
|
|
|
|
|
|
|
|
|
|
|
|
0001501072
|
Amendment Flag |
|
|
|
|
|
|
|
|
|
|
|
|
false
|
Entity Inv Company Type |
|
|
|
|
|
|
|
|
|
|
|
|
N-2
|
Document Type |
|
|
|
|
|
|
|
|
|
|
|
|
N-CSR
|
Entity Registrant Name |
|
|
|
|
|
|
|
|
|
|
|
|
RIVERNORTH OPPORTUNITIES FUND, INC.
|
Fee Table [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder Transaction Expenses [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder
Transaction Expenses |
As
a Percentage of Offering Price |
Sales Load(1) |
—% |
Expenses Borne by Common Stockholders of the
Fund(1) |
—% |
Dividend Reinvestment Plan Fees |
None(2) |
| (1) | If
Common Shares are sold to or through underwriters, the Prospectus Supplement will set forth any applicable sales load and the
estimated offering expenses borne by the Fund. |
| (2) | There
will be no brokerage charges with respect to Common Shares issued directly by the Fund under the dividend reinvestment plan. You
will pay brokerage charges in connection with open market purchases or if you direct the plan agent to sell your Common Shares
held in a dividend reinvestment account. |
|
Other Transaction Expenses [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Expenses [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder
Transaction Expenses |
As
a Percentage of Net Assets Attributable to Common Shares (1)(6) |
Management Fee(3) |
1.73% |
Dividend and Interest Expense on Short Sales(4) |
0.18% |
Interest Expense on borrowings(4) |
0.00% |
Other Expenses(4) |
0.18% |
Acquired Fund Fees and Expenses(5) |
1.25% |
Total Annual Expenses |
3.34% |
| (1) | If
Common Shares are sold to or through underwriters, the Prospectus Supplement will set forth any applicable sales load and the
estimated offering expenses borne by the Fund. |
| (3) | The
management fee paid by the Fund to the Adviser is essentially an all-in fee structure (the “unified management fee”),
including the fee paid to the Adviser for advisory, supervisory, administrative, shareholder servicing and other services. However,
the Fund (and not the Adviser)
will be responsible for certain additional fees and expenses, which are reflected in the table above, that are not covered by
the unified management fee. The unified management fee is charged as a percentage of the Fund’s average daily Managed Assets,
as opposed to net assets. With leverage, Managed Assets are greater in amount than net assets, because Managed Assets include
assets attributable to the Fund’s use of leverage created by its borrowings. In addition, the mark-to-market value of the
Fund’s derivatives will be used for purposes of calculating Managed Assets. The management fee of 1.30% of the Fund’s
Managed Assets represents 1.73% of net assets attributable to Common Shares assuming the use of leverage in an amount of 24% of
the Fund’s Managed Assets. |
| (4) | Other
Expenses, Interest Expense on Borrowings and Dividend and Interest Expense on Short Sales are estimated based on the Fund’s
Annual report dated July 31, 2023. |
| (5) | The
“Acquired Fund Fees and Expenses” disclosed above are based on the expense ratios for the most recent fiscal year
of the Underlying Funds in which the Fund anticipates investing, which may change substantially over time and, therefore, significantly
affect Acquired Fund Fees and Expenses. These amounts are based on the total expense ratio disclosed in each Underlying Fund’s
most recent stockholder report. Some of the Underlying Funds in which the Fund intends to invest charge incentive fees based on
the Underlying Funds’ performance. The 1.25% shown as Acquired Fund Fees and Expenses reflects estimated operating expenses
of the Underlying Funds and transaction-related fees. Certain Underlying Funds in which the Fund intends to invest generally charge
a management fee of 1.00% to 2.00%, which are included in “Acquired Fund Fees and Expenses,” as applicable. The Acquired
Fund Fees and Expenses disclosed above, however, do not reflect any performance-based fees or allocations paid by the Underlying
Funds that are calculated solely on the realization and/or distribution of gains, or on the sum of such gains and unrealized appreciation
of assets distributed in-kind, as such fees and allocations for a particular period may be unrelated to the cost of investing
in the Underlying Funds. Acquired Fund Fees and Expenses are borne indirectly by the Fund, but they will not be reflected in the
Fund’s financial statements; and the information presented in the table will differ from that presented in the Fund’s
financial highlights. |
| (6) | The
example does not include sales load or estimated offering costs. The example should not be considered a representation of future
expenses. The example assumes that the estimated “Other Expenses” set forth in the table are accurate and that all
dividends and distributions are reinvested at net asset value and that the Fund is engaged in leverage of 24% of Managed Assets,
assuming interest and fees on leverage of 6.00%. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s
actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example. |
|
Other Annual Expenses [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense Example [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Example(6)
The
purpose of the following table is to help a holder of Common Shares understand the fees and expenses that such holder would bear
directly or indirectly. The following example illustrates the expenses that you would pay on a $1,000 investment in Common Shares,
assuming (1) that the Fund incurs total annual expenses of 3.34% of its net assets in years 1 through 10 and (2) a 5% annual return.
|
1
year |
3
years |
5
years |
10
years |
Total Expenses Incurred |
$34 |
$103 |
$174 |
$363 |
The
example should not be considered a representation of future expenses. Actual expenses may be greater or less than those assumed.
| (6) | The
example does not include sales load or estimated offering costs. The example should not be considered a representation of future
expenses. The example assumes that the estimated “Other Expenses” set forth in the table are accurate and that all
dividends and distributions are reinvested at net asset value and that the Fund is engaged in leverage of 24% of Managed Assets,
assuming interest and fees on leverage of 6.00%. Actual expenses may be greater or less than those assumed. Moreover, the Fund’s
actual rate of return may be greater or less than the hypothetical 5% annual return shown in the example. |
|
Purpose of Fee Table , Note [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
The
following table is intended to assist investors in understanding the fees and expenses (annualized) that an investor in Common
Shares would bear, directly or indirectly. The table is based on the capital structure of the Fund as of July 31, 2023.
|
Other Expenses, Note [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Expenses, Interest Expense on Borrowings and Dividend and Interest Expense on Short Sales are estimated based on the Fund’s
Annual report dated July 31, 2023.
|
Management Fee not based on Net Assets, Note [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
The
management fee paid by the Fund to the Adviser is essentially an all-in fee structure (the “unified management fee”),
including the fee paid to the Adviser for advisory, supervisory, administrative, shareholder servicing and other services. However,
the Fund (and not the Adviser)
will be responsible for certain additional fees and expenses, which are reflected in the table above, that are not covered by
the unified management fee. The unified management fee is charged as a percentage of the Fund’s average daily Managed Assets,
as opposed to net assets. With leverage, Managed Assets are greater in amount than net assets, because Managed Assets include
assets attributable to the Fund’s use of leverage created by its borrowings. In addition, the mark-to-market value of the
Fund’s derivatives will be used for purposes of calculating Managed Assets. The management fee of 1.30% of the Fund’s
Managed Assets represents 1.73% of net assets attributable to Common Shares assuming the use of leverage in an amount of 24% of
the Fund’s Managed Assets.
|
Acquired Fund Fees and Expenses, Note [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
The
“Acquired Fund Fees and Expenses” disclosed above are based on the expense ratios for the most recent fiscal year
of the Underlying Funds in which the Fund anticipates investing, which may change substantially over time and, therefore, significantly
affect Acquired Fund Fees and Expenses. These amounts are based on the total expense ratio disclosed in each Underlying Fund’s
most recent stockholder report. Some of the Underlying Funds in which the Fund intends to invest charge incentive fees based on
the Underlying Funds’ performance. The 1.25% shown as Acquired Fund Fees and Expenses reflects estimated operating expenses
of the Underlying Funds and transaction-related fees. Certain Underlying Funds in which the Fund intends to invest generally charge
a management fee of 1.00% to 2.00%, which are included in “Acquired Fund Fees and Expenses,” as applicable. The Acquired
Fund Fees and Expenses disclosed above, however, do not reflect any performance-based fees or allocations paid by the Underlying
Funds that are calculated solely on the realization and/or distribution of gains, or on the sum of such gains and unrealized appreciation
of assets distributed in-kind, as such fees and allocations for a particular period may be unrelated to the cost of investing
in the Underlying Funds. Acquired Fund Fees and Expenses are borne indirectly by the Fund, but they will not be reflected in the
Fund’s financial statements; and the information presented in the table will differ from that presented in the Fund’s
financial highlights.
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Objectives and Practices [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Objective
There
have been no changes in the Fund’s investment objective since the prior disclosure date that has not been approved by shareholders.
The
Fund’s investment objective is total return consisting of capital appreciation and current income.
Principal
Investment Strategies
There
have been no material changes to the Fund’s principal investment strategies since the prior disclosure date, other than
updates related to RiverNorth Capital Management, LLC (“RiverNorth” or the “Adviser”) serving as investment
adviser to the Fund effective as of October 1, 2022.
The
Fund seeks to achieve its investment objective by pursuing a tactical asset allocation strategy and opportunistically investing
under normal circumstances in closed-end funds, exchange-traded funds (“ETFs”), business development companies (“BDCs”
and collectively, “Underlying Funds”) and special purpose acquisition companies (“SPACs”). BDCs are a
type of closed-end fund that invests in small companies in the initial stages of their development and are similar to venture
capital funds. SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities.
The Adviser has the flexibility to change the Fund’s asset allocation based on its ongoing analysis of the equity, fixed
income and alternative asset markets. The Adviser considers various quantitative and qualitative factors relating to the domestic
and foreign securities markets and economies when making asset allocation and security selection decisions. While the Adviser
continuously evaluates these factors, material shifts in the Fund’s asset class exposures will typically take place over
longer periods of time. In addition, the Fund, in seeking to achieve its investment objective, will not take activist positions
in the Underlying Funds or SPACs.
Under
normal market conditions, the Fund will invest at least 80% of its Managed Assets in Underlying Funds and SPACs. The Fund directly,
and therefore Common Stockholders indirectly, will bear the expenses of the Underlying Funds or SPACs.
Under
normal market conditions: (i) no more than 80% of the Fund’s Managed Assets will be invested in “equity” Underlying
Funds and SPACs; (ii) no more than 60% of the Fund’s Managed Assets will be invested in “fixed income” Underlying
Funds and SPACs; (iii) no more than 30% of the Fund’s Managed Assets will be invested in “global equity” Underlying
Funds and SPACs; (iv) no more than 15% of the Fund’s Managed Assets will be invested in “emerging market equity”
Underlying Funds; (v) no more than 30% of the Fund’s Managed Assets will be invested in “high yield” (also known
as “junk bond”) and “senior loan” Underlying Funds and SPACs; (vi) no more than 15% of the Fund’s
Managed Assets will be invested in “emerging market income” Underlying Funds and SPACs; (vii) no more than 10% of
the Fund’s Managed Assets will be invested in “real estate” Underlying Funds and SPACs; and (viii) no more than
15% of the Fund’s Managed Assets will be invested in “energy master limited partnership” (“MLP”)
Underlying Funds and SPACs. Underlying Funds and SPACs
included in the 30% limitation applicable to investments in “global equity” Underlying Funds and SPACs may include
Underlying Funds and SPACs that invest a portion of their assets in emerging markets securities. The Fund will also limit its
investments in closed-end funds (including BDCs) that have been in operation for less than one year to no more than 10% of the
Fund’s Managed Assets. The Fund will not invest in inverse ETFs and leveraged ETFs. The types of Underlying Funds and SPACs
referenced in this paragraph will be categorized in accordance with the fund categories established and maintained by Morningstar,
Inc. The investment parameters stated above (and elsewhere in this report) apply only at the time of purchase. The Underlying
Funds and SPACs in which the Fund invests will not include those that are advised or subadvised by the Adviser or its affiliates.
In
selecting closed-end funds, the Adviser opportunistically utilizes a combination of short-term and longer-term trading strategies
to seek to derive value from the discount and premium spreads associated with closed-end funds. The Fund benefits if it purchases
a closed-end fund at a discount and the discount narrows. In addition, the Fund may purchase closed-end funds at a premium if
the Adviser believes the premium will increase. The Adviser employs both a quantitative and qualitative approach in its selection
of closed-end funds and has developed proprietary screening models and trading algorithms to trade closed-end funds. The Adviser
employs the following trading strategies, among others:
Statistical
Analysis (Mean Reversion)
| ● | Using
proprietary quantitative models, the Adviser seeks to identify closed-end funds that are trading at compelling absolute and /
or relative discounts. |
| ● | The
Fund will attempt to capitalize on the perceived mispricing if the Adviser believes that the discount widening is irrational and
expects the discount to narrow to longer-term mean valuations. |
Corporate
Actions
| ● | The
Adviser will pursue investments in closed-end funds that have announced, or the Adviser believes are likely to announce, certain
corporate actions that may drive value for their shareholders. |
| ● | The
Adviser has developed trading strategies that focus on closed-end fund tender offers, rights offerings, shareholder distributions,
open-endings and liquidations. |
The
Fund will invest in other Underlying Funds and SPACs (that are not closed-end funds) to gain exposure to specific asset classes
when the Adviser believes closed-end fund discount or premium spreads are not attractive or to manage overall closed-end fund
exposure in the Fund.
An
index-based ETF is an investment company that seeks to track the performance of a particular market index. These indices include
not only broad-market indices, but more specific indices as well, including those relating to particular sectors, markets, regions
and industries. The Adviser selects ETFs based on their ability to offer specific sector and style exposure in a cost and tax
efficient manner. The Fund purchases ETF shares on the secondary market. Unlike a fund that allocates its assets
among mutual funds based on the perceived ability of the advisers to those mutual funds, the Adviser actively manages the Fund’s
portfolio among the Underlying Funds and SPACs based on the Adviser’s research and analysis of the market and the investment
merit of the Underlying Funds and SPACs themselves. In evaluating the investment merit of Underlying Funds and SPACs, the Adviser
analyzes the asset class, the portfolio manager(s) and the adviser, past performance, recent portfolio holdings and concentration
risks.
Under
normal circumstances, the Fund intends to maintain long positions in Underlying Funds and SPACs, however, may engage in short
sales for investment purposes. When the Fund engages in a short sale, it sells a security it does not own and, to complete the
sale, borrows the same security from a broker or other institution. The Fund may benefit from a short position when the shorted
security decreases in value. The Fund may also at times establish hedging positions. Hedging positions may include short sales
and derivatives, such as options and swaps (“Hedging Positions”). Under normal market conditions, no more than 30%
of the Fund’s Managed Assets will be in Hedging Positions. The Fund’s investments in derivatives will be included
under the 80% policy noted above so long as the underlying asset of such derivatives is a closed-end fund or Underlying Fund,
respectively. The Adviser intends to use Hedging Positions to lower the Fund’s volatility but they may also be used to seek
to enhance the Fund’s return. A short sale is a transaction in which the Fund sells a security that it does not own in anticipation
of a decline in the market price of the security. To complete the short sale, the Fund must arrange through a broker to borrow
the security in order to deliver it to the buyer. The Fund is obligated to replace the borrowed security by purchasing it at a
market price at or prior to the time it must be returned to the lender. The price at which the Fund is required to replace the
borrowed security may be more or less than the price at which the security was sold by the Fund. The Fund will incur a loss if
the price of the security sold short increases between the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund will realize a gain if the price of the security declines between those dates.
The
Adviser performs both a quantitative and qualitative analysis, including fundamental and technical analysis to assess the relative
risk and reward potential for each SPAC investment. Among other things, the Adviser will evaluate the management team’s
strategy, experience, deal flow, and demonstrated track record in building enterprise value. The Adviser will also evaluate the
terms of each SPAC offering, including the aggregate amount of the offering, the offering price of the securities, the equity
yield to termination, the option value of warrants, the sponsor’s interest in the SPAC, and the expected liquidity of the
SPAC’s securities. The Fund will purchase securities of SPACs in their initial public offerings and in the secondary market.
In
selecting SPAC investments, the Adviser will also utilize trading strategies and programs to seek to derive value from buying
and selling SPAC securities, including units, common shares and warrants. Under normal market conditions, the Fund intends to
purchase SPAC securities in an initial public offering and opportunistically buy and sell SPAC securities on the secondary market
prior to a SPAC’s initial business combination. The Fund does not intend to hold common shares after a SPAC’s initial
business combination has been completed other than common shares obtained temporarily through the conversion of a SPAC’s
warrants into common shares. The Fund may redeem common shares of a SPAC in exchange for the Fund’s pro rata portion of
the SPAC’s trust account.
The
Fund also may invest up to 20% of its Managed Assets in exchange-traded notes (“ETNs”), certain derivatives, such
as options and swaps, cash and cash equivalents. Such investments will not be
counted towards the Fund’s 80% policy. ETNs are debt securities whose returns are linked to a particular index.
The
Fund may invest directly in debt securities issued by certain credit-oriented unlisted funds and BDCs (“Private Debt”)
identified by the Adviser in its due diligence process. The Adviser believes that investments in Private Debt can provide the
Fund with the opportunity to obtain more favorable terms and similar risk profiles to similar publicly traded debt investments
available. Private Debt often may be illiquid and is typically not listed on an exchange and traded less actively than similar
securities issued by publicly traded-vehicles. For certain Private Debt investments, trading may only be possible through the
assistance of the broker who originally brought the security to the market and has a relationship with the issuer. Due to the
limited trading market, independent pricing services may be unable to provide a price for Private Debt, and the fair value of
the securities may be determined in good faith under procedures approved by the Board, which typically will include the use of
one or more independent broker quotes.
In
selecting appropriate Private Debt investments for the Fund, the Adviser completes a fundamental and technical analysis of the
issuer, with a focus on reducing downside risk. As part of this analysis, the Adviser evaluates the manager’s experience
and ability based on historical track record regarding credit performance of previously originated loans and meetings with the
management team. In addition, the Adviser reviews the issuer’s investment portfolio, including the issuer’s asset
diversification across type and sector, before further evaluating the issuer’s financials to review its capital structure,
particularly details of any existing leverage and the maximum leverage permitted on any senior debt of the issuer. Once comfort
is reached regarding the issuer’s investment portfolio, manager, and capital structure, the Adviser then evaluates details
of the terms of the Private Debt opportunity, beginning with a review to ensure appropriate covenants are contained within to
limit the Fund’s downside risk across a range of scenarios (which typically will include a minimum level of subordination
requirement.) Following, the Adviser will review and weigh pricing levels on the Private Debt compared to other opportunities
in the market to assess relative value and arrive at an investment decision. Opportunities for the Fund to make investments in
Private Debt may be limited, especially those which fit the Adviser’s investment criteria.
The
Fund may attempt to enhance the return on the cash portion of its portfolio by investing in a total return swap agreement. A total
return swap agreement provides the Fund with a return based on the performance of an underlying asset, in exchange for fee payments
to a counterparty based on a specific rate. The difference in the value of these income streams is recorded daily by the Fund,
and is typically settled in cash at least monthly. If the underlying asset declines in value over the term of the swap, the Fund
would be required to pay the dollar value of that decline plus any applicable fees to the counterparty. The Fund may use its own
net asset value (“NAV”) or any other reference asset that the Adviser chooses as the underlying asset in a total return
swap. The Fund will limit the notional amount of all total return swaps in the aggregate to 15% of the Fund’s Managed Assets.
Using the Fund’s own NAV as the underlying asset in the total return swap serves to reduce cash drag (the impact of cash
on the Fund’s overall return) by replacing it with the impact of market exposure based upon the Fund’s own investment
holdings. This type of total return swap would provide the Fund with a return based on its NAV. Like any total return swap, the
Fund would be subject to counterparty risk and the risk that its own NAV declines in value.
The
Fund generally seeks to hold securities for the long term, but may liquidate positions in order to change the Fund’s asset
allocation or to generate cash to invest in more attractive opportunities, which may result in a larger portion of any net gains
being realized as short-term capital gains. In addition, a negative change in the fundamental or qualitative characteristics of
the issuer may cause the Adviser to sell a security. Finally, the Adviser may sell a security when its price approaches, meets
or exceeds the Adviser’s target price. For instance, the Adviser may sell shares of a closed-end fund when it is no longer
selling at a discount. This may result in a high rate of portfolio turnover.
The
Fund’s investment objective is non-fundamental and may be changed by the Board without Common Stockholder approval. Common
Stockholders will, however, receive at least 60 days’ prior notice of any change in this investment objective.
|
Risk Factors [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Risks
Investing
in the Fund involves certain risks relating to its structure and investment objective. You should carefully consider these risk
factors, together with all of the other information included in this report, before deciding whether to make an investment in
the Fund. An investment in the Fund may not be appropriate for all investors, and an investment in the common shares of the Fund
should not be considered a complete investment program.
The risks
set forth below are not the only risks of the Fund, and the Fund may face other risks that have not yet been identified, which
are not currently deemed material or which are not yet predictable. If any of the following risks occur, the Fund’s financial
condition and results of operations could be materially adversely affected. In such case, the Fund’s NAV and the trading
price of its securities could decline, and you may lose all or part of your investment.
Certain
risk factors included below have been updated since the prior disclosure date to reflect certain non-material updates.
Structural Risks:
Not a Complete Investment
Program
The Fund
is intended for investors seeking capital appreciation and current income over the long-term, and is not intended to be a short-term
trading vehicle. An investment in the Common Shares of the Fund should not be considered a complete investment program. Each investor
should take into account the Fund’s investment objective and other characteristics as well as the investor’s other
investments when considering an investment in the Common Shares. An investment in the Fund may not be appropriate for all investors.
Risks Associated with Offerings
of Additional Common Shares
The voting
power of current Common Stockholders will be diluted to the extent that current Common Stockholders do not purchase Common Shares
in any future offerings of Common Shares or do not purchase sufficient Common Shares to maintain their percentage interest. If
the Fund is unable to invest the proceeds of such offering as intended, the Fund’s per Common Share distribution may decrease
and the Fund may not participate in market advances to the same extent as if such proceeds were fully invested as planned. If
the Fund sells Common Shares at a price below NAV pursuant to the consent of Common Stockholders, shareholders will experience
a dilution of the aggregate NAV per Common Share because the sale price will be less than the Fund’s then-current NAV per
Common Share. Similarly, were the expenses of the offering to exceed the amount by which the sale price exceeded the Fund’s
then current NAV per Common Share, shareholders would experience a dilution of the aggregate NAV per Common Share. This dilution
will be experienced by all shareholders, irrespective of whether they purchase Common Shares in any such offering.
Additional
Risks of Rights
There
are additional risks associated with an offering of subscription rights to purchase Common Shares (“Rights”). Shareholders
who do not exercise their Rights may, at the completion of such an offering, own a smaller proportional interest in the Fund than
if they exercised their Rights. As a result of such an offering, a shareholder may experience dilution in NAV per share if the
subscription price per share is below the NAV per share on the expiration date. If the subscription price per share is below the
NAV per share of the Fund’s Common Shares on the expiration date, a shareholder will experience an immediate dilution of
the aggregate NAV of such shareholder’s Common Shares if the shareholder does not participate in such an offering and the
shareholder will experience a reduction in the NAV per share of such shareholder’s Common Shares whether or not the shareholder
participates in such an offering. Such a reduction in NAV per share may have the effect of reducing market price of the Common
Share. The Fund cannot state precisely the extent of this dilution (if any) if the shareholder does not exercise such shareholder’s
Rights because the Fund does not know what the NAV per share will be when the offer expires or what proportion of the Rights will
be exercised. If the subscription price is substantially less than the then current NAV per Common Share at the expiration of
a rights offering, such dilution could be substantial. Any such dilution or accretion will depend upon whether (i) such shareholders
participate in the rights offering and (ii) the Fund’s NAV per Common Share is above or below the subscription price on
the expiration date of the rights offering. In addition to the economic dilution described above, if a Common Stockholder does
not exercise all of their rights, the Common Stockholders will incur voting dilution as a result of this rights offering. This
voting dilution will occur because the Common Stockholders will own a smaller proportionate interest in the Fund after the rights
offering than prior to the rights offering. There is a risk that changes in market conditions may result in the underlying Common
Shares purchasable upon exercise of the subscription rights being less attractive to investors at the conclusion of the subscription
period. This may reduce or eliminate the value of the subscription rights. If investors exercise only a portion of the rights,
the number of Common Shares issued may be reduced, and the Common Shares may trade at less favorable prices than larger offerings
for similar securities. Subscription rights issued by the Fund may be transferable or non-transferable rights. In a non-transferable
rights offering, Common Stockholders who do not wish to exercise their rights will be unable to sell their rights. In a transferrable
rights offering, the Fund will use its best efforts to ensure an adequate trading market for the rights; however, investors may
find that there is no market to sell rights they do not wish to exercise.
Leverage
Risks
The
Fund may borrow money, or issue debt or preferred stock. Since the holders of Common Shares pay all expenses related to the issuance
of debt or use of leverage, the use of leverage through borrowing of money, issuance of debt securities or the issuance of preferred
stock for investment purposes creates risks for the holders of Common Shares. Leverage is a speculative technique that exposes
the Fund to greater risk and increased costs than if it were not implemented. Increases and decreases in the value of the Fund’s
portfolio will be magnified when the Fund uses leverage. As a result, leverage may cause greater changes in the Fund’s NAV.
The Fund will also have to pay interest on its borrowings or dividends on preferred stock, if any, which may reduce the Fund’s
return. The leverage costs may be greater than the Fund’s return on the underlying investment. The Fund’s leveraging
strategy may not be successful.
If
the Fund utilizes leverage in the form of borrowing, it anticipates that the money borrowed for investment purposes will incur
interest based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides
a higher rate of return, net of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause
the holders of Common Shares to receive a higher current rate of return than if the Fund were not leveraged. If, however, long-term
and/or short-term rates rise, the interest rate on borrowed money could exceed the rate of return on securities held by the Fund,
reducing return to the holders of Common Shares.
There
is no assurance that a leveraging strategy will be successful. Leverage involves risks and special considerations for Common Stockholders,
including:
| • | the
likelihood of greater volatility of NAV, market price and dividend rate of the Common
Shares than a comparable portfolio without leverage; |
| • | the
risk that fluctuations in interest rates on borrowings or on short-term debt or in the
interest or dividend rates on any debt securities or preferred shares that the Fund must
pay will reduce the return to the Common Stockholders; |
| • | the
effect of leverage in a declining market, which is likely to cause a greater decline
in the NAV of the Common Shares than if the Fund were not leveraged, may result in a
greater decline in the market price of the Common Shares; |
| • | when
the Fund uses financial leverage, the investment management fees payable to the Adviser
will be higher than if the Fund did not use leverage. This may create a conflict of interest
between the Adviser, on the one hand, and the holders of Common Shares, on the other;
and |
| • | leverage
may increase operating costs, which may reduce total return. |
The
use of leverage may require the Fund to segregate assets to cover its obligations (or, if the Fund borrows money or issues preferred
shares, to maintain asset coverage in conformity with the requirements of the 1940 Act). While the segregated assets will be invested
in liquid securities, they may not be used for other operational purposes. Consequently, the use of leverage may limit the Fund’s
flexibility and may require that the Fund sell other portfolio investments to pay Fund expenses, to maintain assets in an amount
sufficient to cover the Fund’s leveraged exposure or to meet other obligations at a time when it may be disadvantageous
to sell such assets. Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements
relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments
imposed by guidelines of one or more rating agencies, which may issue ratings for the short-term debt securities or preferred
shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent
than those imposed by the 1940 Act. The Adviser does not believe that these covenants or guidelines will impede it from managing
the Fund’s portfolio in accordance with the Fund’s investment objective and policies if the Fund were to utilize leverage.
Leverage
risk would also apply to the Fund’s investments in Underlying Funds and SPACs to the extent an Underlying Fund or SPAC uses
leverage.
Market
Discount
The
stock of closed-end management investment companies often trade at a discount from their NAV, and the Fund’s Common Shares
may likewise trade at a discount from NAV. The trading price of the Fund’s Common Shares may be less than the NAV. The returns
earned by Common Stockholders who sell their Common Shares below NAV will be reduced. The Fund’s Common Shares are currently
sold at a premium to NAV. This risk would also apply to the Fund’s investments in closed-end funds.
Anti-Takeover
Provisions
Maryland
law and the Fund’s Charter and Bylaws include provisions that could limit the ability of other entities or persons to acquire
control of the Fund or to convert the Fund to open-end status. These provisions could deprive the holders of Common Shares of
opportunities to sell their Common Shares at a premium over the then current market price of the Common Shares or at NAV. This
risk would also apply to many of the Fund’s investments in closed-end funds.
Investment-Related
Risks:
The
risks listed below are in alphabetical order. With the exception of Underlying Fund risk (and except as otherwise noted below),
the following risks apply to the direct investments the Fund may make, and generally apply to the Fund’s investments in
Underlying Funds and SPACs. That said, each risk described below may not apply to each Underlying Fund or SPAC investment. Similarly,
an Underlying Fund may be subject to additional or different risks than those described below.
Asset
Allocation Risks
To
the extent that the Adviser’s asset allocation strategy may fail to produce the intended result, the Fund’s return
may suffer. Additionally, the active asset allocation style of the Fund leads to changing allocations over time and represents
a risk to investors who target fixed asset allocations.
Convertible
Securities Risks
The
market value of convertible securities tends to fall when prevailing interest rates rise. The value of convertible securities
also tends to change whenever the market value of the underlying common or preferred stock fluctuates. Convertible securities
tend to be of lower credit quality.
Defensive
Measures
The
Fund may invest up to 100% of its assets in cash, cash equivalents and short-term investments as a defensive measure in response
to adverse market conditions or opportunistically at the discretion of the Adviser. During these periods or during periods when
an Underlying Fund invests defensively, the Fund may not be pursuing its investment objective.
Derivatives
Risks
The
Fund and the Underlying Funds may enter into derivatives transactions. Derivative transactions involve investment techniques and
risks different from those associated with investments in Underlying Funds. Generally, a derivative is a financial contract the
value of which depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and may relate to
individual debt or equity instruments, interest rates, currencies or currency exchange rates, commodities, related indexes, and
other assets. Derivatives can be volatile and involve various types and degrees of risk, depending upon the characteristics of
a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that
a small investment in a derivative could have a large potential impact on the performance of a fund. A fund could experience a
loss if derivatives do not perform as anticipated, if they are not correlated with the performance of other investments which
they are used to hedge or if the fund is unable to liquidate a position because of an illiquid secondary market. The market for
many derivatives is, or can suddenly become, illiquid. Changes in liquidity may result in significant, rapid and unpredictable
changes in the prices of derivatives. When used for speculative purposes, derivatives will produce enhanced investment exposure,
which will magnify gains and losses. Certain derivatives transactions may give rise to a form of leverage. The use of leverage
may cause a fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations. Leverage
may cause a fund to be more volatile than if it had not been leveraged. This is because leverage tends to exaggerate the effect
of any increase or decrease in the value of the fund’s portfolio securities. Further, using derivatives may include the
risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly, or at all, with
the value of the assets, reference rates or indexes they are designed to closely track. The Fund also will be subject to credit
risk with respect to the counterparties to the derivatives contracts purchased by the Fund. If a counterparty becomes bankrupt
or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience
significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding.
The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.
On
October 28, 2020, the Securities and Exchange Commission (“SEC”) adopted Rule 18f-4 under the 1940 Act relating to
a registered investment company’s use of derivatives and related instruments. Rule 18f-4 prescribes specific value-at-risk
leverage limits for certain derivatives users and requires certain derivatives users to adopt and implement a derivatives risk
management program (including the appointment of a derivatives risk manager and the implementation of certain testing requirements),
and prescribes reporting requirements in respect of derivatives. Subject to certain conditions, if a fund qualifies as a “limited
derivatives user,” as defined in Rule 18f-4, it is not subject to the full requirements of Rule 18f-4. In connection with
the adoption of Rule 18f-4, the SEC rescinded certain of its prior guidance regarding asset segregation and coverage requirements
in respect of derivatives transactions and related instruments. With respect to reverse repurchase agreements or other similar
financing transactions in particular, Rule 18f-4 permits a fund to enter into such transactions if the fund either (i) complies
with the asset coverage requirements of Section 18 of the 1940 Act, and combines the aggregate amount of indebtedness associated
with all similar financing with the aggregate amount of any other senior securities representing indebtedness when calculating
the relevant asset coverage ratio, or (ii) treats all similar financing transactions as derivatives transactions for all purposes
under Rule 18f-4. The Fund was required to comply with Rule 18f-4 beginning August 19, 2022 and has adopted procedures for investing
in derivatives and other transactions in compliance with Rule 18f-4. Disclosure regarding Rule 18f-4 under the 1940 Act has been
added since the prior disclosure date.
Defaulted
and Distressed Securities Risks
The
Underlying Funds may invest directly in defaulted and distressed securities. Legal difficulties and negotiations with creditors
and other claimants are common when dealing with defaulted or distressed companies. Defaulted or distressed companies may be insolvent
or in bankruptcy. In the event of a default, an Underlying Fund may incur additional expenses to seek recovery. The repayment
of defaulted bonds is subject to significant uncertainties, and in some cases, there may be no recovery of repayment. Defaulted
bonds might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest
or other payments. Because of the relative illiquidity of defaulted or distressed debt and equity securities, short sales are
difficult, and most Underlying Funds primarily maintain long positions. Some relative value trades are possible, where an investor
sells short one class of a defaulted or distressed company’s capital structure and purchases another. With distressed investing,
often there is a time lag between when an Underlying Fund makes an investment and when the Underlying Fund realizes the value
of the investment. In addition, an Underlying Fund may incur legal and other monitoring costs in protecting the value of the Underlying
Fund’s claims.
Equity
Securities Risks
While
equity securities have historically generated higher average returns than fixed income securities, equity securities have also
experienced significantly more volatility in those returns. An adverse event, such as an unfavorable earnings report, may depress
the value of an issuer’s equity securities held by an Underlying Fund. Equity security prices fluctuate for several reasons,
including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant
stock market, or when political or economic events affecting the issuers occur. The value of a particular equity security may
fall in value. The prices of stocks change in response to many factors, including the historical and prospective earnings of the
issuer, the value of its assets, management decisions, decreased demand for an issuer’s products or services, increased
production costs, general economic conditions, interest rates, currency exchange rates, investor perceptions and market liquidity.
The value of an Underlying Fund’s shares will go up and down due to movement in the collective returns of the individual
securities held by the Underlying Fund. Common stocks are subordinate to preferred stocks and debt in a company’s capital
structure, and if a company is liquidated, the claims of secured and unsecured creditors and owners of preferred stocks take precedence
over the claims of those who own Common Shares. In addition, equity security prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase.
Exchange-Traded
Note Risks
The
Fund and the Underlying Funds may invest in exchange-traded notes (“ETNs”), which are notes representing unsecured
debt issued by an underwriting bank. ETNs are typically linked to the performance of an index plus a specified rate of interest
that could be earned on cash collateral. The value of an ETN may be influenced by time to maturity, level of supply and demand
for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that affect the referenced index. ETNs typically
mature 30 years from the date of issue. The issuer’s credit rating will be investment grade at the time of investment, however,
the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect
for any given time period. If a rating agency lowers the issuer’s credit rating, the value of the ETN will decline and a
lower credit rating reflects a greater risk that the issuer will default on its obligation. When a fund invests in ETNs, it will
bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount
of return on investment at maturity or upon redemption.
There
may be restrictions on a fund’s right to liquidate its investment in an ETN prior to maturity (for example, a fund may only
be able to offer its ETN for repurchase by the issuer on a weekly basis), since ETNs are meant to be held until maturity. A fund’s
decision to sell its ETN holdings may be limited by the availability of a secondary market.
Fixed
Income Securities Risks
The
Underlying Funds and the Fund may invest in fixed income securities. Fixed income securities increase or decrease in value based
on changes in interest rates. If rates increase, the value of an Underlying Fund’s fixed income securities generally declines.
On the other hand, if rates fall, the value of the fixed income securities generally increases. The issuer of a fixed income security
may not be able to make interest and principal payments when due. This risk is increased in the case of issuers of high yield
securities, also known as “junk bonds.” If a U.S. Government agency or instrumentality in which an Underlying Fund
invests defaults, and the U.S. Government does not stand behind the obligation, the Underlying Fund’s share price or yield
could fall. Securities of certain U.S. Government sponsored entities are neither issued nor guaranteed by the U.S. Government.
The Underlying Funds may invest in fixed income securities of any credit quality, maturity or duration. Fixed income securities
risks include components of the following additional risks:
Credit
Risk. The issuer of a fixed income security may not be able to make interest and principal payments when due. Generally, the
lower the credit rating of a security, the greater the risk that the issuer will default on its obligation, which could result
in a loss to a fund. The Underlying Funds may invest in securities that are rated in the lowest investment grade category. Issuers
of these securities are more vulnerable to changes in economic conditions than issuers of higher grade securities.
High
Yield Securities Risk. The Underlying Funds may invest in high yield securities, also known as “junk bonds.” High
yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. High yield securities
are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with
the terms of the obligation. The market for high yield securities is generally less active than the market for higher quality
securities. This may limit the ability of a fund to sell high yield securities at the price at which it is being valued for purposes
of calculating NAV.
U.S.
Government Securities Risk. The Underlying Funds may invest in U.S. Government securities. The U.S. Government’s guarantee
of ultimate payment of principal and timely payment of interest on certain U.S. Government securities owned by an Underlying Fund
does not imply that the Underlying Fund’s shares are guaranteed or that the price of the Underlying Fund’s shares
will not fluctuate. In addition, securities issued by Freddie Mac, Fannie Mae and Federal Home Loan Banks are not obligations
of, or insured by, the U.S. Government. If a U.S. Government agency or instrumentality in which an Underlying Fund invests defaults
and the U.S. Government does not stand behind the obligation, the Fund’s NAV could fall.
Interest
Rate Risk. An Underlying Fund’s NAV and total return will vary in response to changes in interest rates. If rates increase,
the value of an Underlying Fund’s investments generally will decline, as will the Underlying Fund’s NAV. In typical
interest rate environments, the prices of longer-term fixed income securities generally fluctuate more than the prices of shorter-term
fixed income securities as interest rates change.
Interest
rates in the United States and many other countries have risen in recent periods and may continue to rise in the future. Additionally,
as a result of increasing interest rates, reserves held by banks and other financial institutions in bonds and other debt securities
could face a significant decline in value relative to deposits and liabilities, which coupled with general economic headwinds
resulting from a changing interest rate environment, creates liquidity pressures at such institutions, as evidenced by the bank
run on the Silicon Valley Bank Financial Group (“SVB”) causing it to be placed into receivership. As a result, certain
sectors of the credit markets could experience significant declines in liquidity, and it is possible that the Fund (or an Underlying
Fund) will not be able to manage this risk effectively. It is yet to be determined how the bank run on SVB will fully impact the
overall performance of the Fund or an Underlying Fund and how similar events may affect the ability of the Fund or an Underlying
Fund to execute its investment strategy.
Sovereign
Obligation Risk. The Underlying Funds may invest in sovereign (i.e., foreign government) debt obligations. Investment in sovereign
debt obligations involves special risks not present in corporate debt obligations. The issuer of the sovereign debt or the governmental
authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the
Underlying Funds may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices
of sovereign debt may be more volatile than prices of U.S. debt obligations. In the past, certain emerging markets have encountered
difficulties in servicing their debt obligations, withheld payments of principal and interest, and declared moratoria on the payment
of principal and interest on their sovereign debts. See also “Foreign Investing Risks” below.
Foreign
Investing Risks
The
Fund and the Underlying Funds may invest in foreign securities. Investments in foreign securities may be affected by currency
controls and exchange rates; different accounting, auditing, financial reporting, and legal standards and practices; expropriation;
changes in tax policy; social, political and economic instability; greater market volatility; differing securities market structures;
higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions
or in receiving payment of dividends. In addition, changes in government administrations or economic or monetary policies in the
United States or abroad could result in appreciation or depreciation of the Fund’s or Underlying Fund’s securities.
These risks may be heightened in connection with investments in emerging or developing countries. To the extent that a Fund or
Underlying Fund invests in depositary receipts, the Fund or Underlying Fund will be subject to many of the same risks as when
investing directly in foreign securities. The effect of recent, worldwide economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate, and some national economies continue to show profound instability, which may
in turn affect their international trading partners.
Illiquid
Securities Risks
The
Underlying Funds may invest in illiquid securities. It may not be possible to sell or otherwise dispose of illiquid securities
both at the price and within the time period deemed desirable by a fund. Illiquid securities also may be difficult to value.
Initial
Public Offerings Risks
The
Fund and the Underlying Funds may purchase securities in initial public offerings (“IPOs”). Because securities sold
in an IPO frequently are volatile in price, the Fund or an Underlying Fund may hold IPO shares for a very short period of time.
This may increase the turnover of a fund’s portfolio and may lead to increased expenses to the fund, such as commissions
and transaction costs. By selling shares, a fund may realize taxable capital gains that it will subsequently distribute to shareholders.
Investing in IPOs has added risks because the shares are frequently volatile in price. As a result, their performance can be more
volatile and they face greater risk of business failure, which could increase the volatility of a fund’s portfolio.
The
Fund’s IPO investments may be in IPOs of Underlying Funds. There is a significant risk that the shares of closed-end funds
purchased in an IPO will trade at a price below their IPO price.
Investment
and Market Risks
An
investment in Common Shares is subject to investment risk, including the possible loss of the entire principal amount invested.
An investment in Common Shares represents an indirect investment in the Underlying Funds owned by the Fund. The value of the Underlying
Funds, like other market investments, may move up or down, sometimes rapidly and unpredictably. Overall stock market risks may
also affect the NAV of the Fund or the Underlying Funds. Factors such as domestic and foreign economic growth and market conditions,
interest rate levels and political events affect the securities markets. The Common Shares at any point in time may be worth less
than the original investment, even after taking into account any reinvestment of dividends and distributions.
Legislation,
Policy and Regulatory Risks
At
any time after the date of this annual report, legislation or additional regulations may be enacted that could negatively affect
the assets of the Fund or the issuers of such assets. Recent changes in the U.S. political landscape and changing approaches to
regulation may have a negative impact on the entities and/or securities in which the Fund or an Underlying Fund invests. Legislation
or regulation may also change the way in which the Fund or an Underlying Fund is regulated. New or amended regulations may be
imposed by the Commodity Futures Trading Commission (“CFTC”), the SEC, the Board of Governors of the Federal Reserve
System or other financial regulators, other governmental
regulatory authorities or self-regulatory organizations that supervise the financial markets that could adversely affect the Fund
or the Underlying Funds. In particular, these agencies are empowered to promulgate a variety of new rules pursuant to financial
reform legislation in the United States. There can be no assurance that future legislation, regulation or deregulation will not
have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objective. The
Fund and the Underlying Funds also may be adversely affected by changes in the enforcement or interpretation of existing statutes
and rules by these governmental regulatory authorities or self regulatory organizations.
LIBOR
Risk
Certain
of the Fund's or Underlying Funds’ investments, payment obligations and financing terms may be based on floating rates,
such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates. In July of 2017, the head of the United
Kingdom Financial Conduct Authority (“FCA”) announced a desire to phase out the use of LIBOR at the end of 2021. Most
LIBOR settings are no longer published as of December 31, 2021. Overnight and 12-month U.S. dollar LIBOR settings permanently
ceased after publication on June 30, 2021. 1-, 3-and 6-month U.S. dollar LIBOR settings will continue to be published using a
synthetic methodology until September 2024. Neither the effect of the LIBOR transition process nor its ultimate success can yet
be known. Although the transition away from LIBOR has become increasingly well-defined, any potential effects of the transition
away from LIBOR and other benchmark rates on financial markets, a fund or the financial instruments in which a fund invests can
be difficult to ascertain. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains
uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments.
Global regulators have advised market participants to cease entering into new contracts using LIBOR as a reference rate, and it
is possible that investments in LIBOR-based instruments could invite regulatory scrutiny. In addition, a liquid market for newly-issued
instruments that use a reference rate other than LIBOR still may be developing. All of the aforementioned may adversely affect
the Fund’s or an Underlying Fund’s performance or NAV.
Management
Risks
The
Adviser’s judgments about the attractiveness, value and potential appreciation of a particular asset class or individual
security in which the Fund invests may prove to be incorrect and there is no guarantee that the Adviser’s judgment will
produce the desired results. Similarly, the Fund’s investments in Underlying Funds are subject to the judgment of the Underlying
Funds’ managers which may prove to be incorrect. In addition, the Adviser will have limited information as to the portfolio
holdings of the Underlying Funds at any given time. This may result in the Adviser having less ability to respond to changing
market conditions. The Fund may allocate its assets so as to under-emphasize or over-emphasize ETFs or other investments under
the wrong market conditions, in which case the Fund’s NAV may be adversely affected.
Market
Disruption and Geopolitical Risks
The
value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic
and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies
or governments. These movements, sometimes called volatility, may be greater or less depending on the types of securities the
Fund owns and the markets in which the securities trade. The increasing interconnectivity between global economies and financial
markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a
different country, region or financial market. Securities in the Fund’s portfolio may underperform due to inflation (or
expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, pandemics,
epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar
to those in recent years, such as terrorist attacks around the world, natural disasters, social and political discord or debt
crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global
financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events
affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects.
Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund’s portfolio,
as well as its ability to sell securities to meet redemptions. There is a risk that you may lose money by investing in the Fund.
Social,
political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics),
terrorism, conflicts and social unrest, may occur and could significantly impact issuers, industries, governments and other systems,
including the financial markets. As global systems, economies and financial markets are increasingly interconnected, events that
once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region
or financial market will, more frequently, adversely impact issuers in other countries, regions or markets. These impacts can
be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. These types of events
quickly and significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption.
The extent and nature of the impact on supply chains or economies and markets from these events is unknown, particularly if a
health emergency or other similar event persists for an extended period of time. Social, political, economic and other conditions
and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts and social unrest,
could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally
have a significant impact on the economies and financial markets and the Adviser’s investment advisory activities and services
of other service providers, which in turn could adversely affect the Fund’s investments and other operations. The value
of the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations
and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or beneficial
to the investment advisory or other activities on behalf the Fund.
In
early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. The outbreak of COVID-19 and its variants
resulted in closing international borders, enhanced health screenings, healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general public concern and uncertainty. This outbreak
negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual
companies and the market in general in significant and unforeseen ways. On May 5, 2023, the World Health Organization declared
the end of the global emergency status for COVID-19. The United States subsequently ended the federal COVID-19 public health emergency
declaration effective May 11, 2023. Although vaccines for COVID-19 are widely available, it is unknown how long certain circumstances
related to the pandemic will persist, whether they will reoccur in the future and what additional implications may follow from
the pandemic. The impact of these events and other epidemics or pandemics in the future could adversely affect Fund performance.
In
February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat
of wider-spread hostilities could have a severe adverse effect on the region and global economies, including significant negative
impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on
Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact
on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict
and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related
events could have a significant impact on Fund performance and the value of Fund investments.
Disclosures
related to the COVID-19 pandemic and Russian military attack on Ukraine have been updated since the prior disclosure date.
Master
Limited Partnerships Risks
The
Underlying Funds may invest in MLPs. Investments in publicly traded MLPs, which are limited partnerships or limited liability
companies taxable as partnerships, involve some risks that differ from an investment in the common stock of a corporation, including
risks related to limited control and limited rights to vote on matters affecting MLPs, risks related to potential conflicts of
interest between an MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general
partner’s right to require unit-holders to sell their common units at an undesirable time or price. MLPs may derive income
and gains from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting
gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs generally have two classes of owners,
the general partner and limited partners. When investing in an MLP, an Underlying Fund generally purchases publicly traded common
units issued to limited partners of the MLP. The general partner is typically owned by a major energy company, an investment fund,
the direct management of the MLP or is an entity owned by one or more of such parties. The general partner may be structured as
a private or publicly traded corporation or other entity. The general partner typically controls the operations and management
of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s
operations and management. As compared to common stockholders of a corporation, holders of MLP common units have more limited
control and limited rights to vote on matters affecting the partnership.
MLPs
are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions
up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner
interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests
have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages.
Distributable cash in excess of the MQD paid to both common and subordinated units is distributed to both common and subordinated
units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner
operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the
general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage
of the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where it receives
50% of every incremental dollar paid to common and subordinated unit holders. These incentive distributions encourage the general
partner to streamline costs, increase capital expenditures and acquire assets in order to increase the partnership’s cash
flow and raise the quarterly cash distribution in order to reach higher tiers. Such results benefit all security holders of the
MLP.
MLP
common units represent a limited partnership interest in the MLP. MLP common units are listed and traded on U.S. securities exchanges,
with their value fluctuating predominantly based on prevailing market conditions and the success of the MLP. An Underlying Fund
may purchase MLP common units in market transactions. Unlike owners of common stock of a corporation, owners of MLP common units
have limited voting rights and have no ability to elect directors. In the event of liquidation, MLP common units have preference
over subordinated units, but not over debt or preferred units, to the remaining assets of the MLP.
MLPs
may be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. Certain
MLP securities may trade in lower volumes due to their smaller capitalizations. Accordingly, those MLPs may be subject to more
abrupt or erratic price movements and may lack sufficient market liquidity to enable an Underlying Fund to effect sales at an
advantageous time or without a substantial drop in price. As a result, these investments may be difficult to dispose of at a fair
price at the times when an Underlying Fund believes it is desirable to do so. MLPs are generally considered interest-rate sensitive
investments. During periods of interest rate volatility, these investments may not provide attractive returns, which may adversely
impact the overall performance of the Fund or an Underlying Fund.
MLPs
are subject to various risks related to the underlying operating companies they control, including dependence upon specialized
management skills and the risk that those operating companies may lack or have limited operating histories. The success an Underlying
Fund’s investments in an MLP will vary depending on the underlying industry represented by the MLP’s portfolio. Certain
MLPs in which an Underlying Fund may invest depend upon their parent or sponsor entities for the majority of their revenues.
Certain
MLPs in which an Underlying Fund may invest depend upon a limited number of customers for substantially all of their revenue.
Similarly, certain MLPs in which an Underlying Fund may invest depend upon a limited number of suppliers of goods or services
to continue their operations. The loss of those customers or suppliers could have a material adverse effect on an MLP’s
results of operations and cash flow, and on its ability to make distributions to unit holders such as an Underlying Fund.
The
benefit an Underlying Fund will derive from its investment in MLPs will be largely dependent on the MLPs being treated as partnerships
and not as corporations for federal income tax purposes. As a partnership, an MLP generally has no tax liability at the entity
level. If, as a result of a change in current law or a change in an MLP’s business, an MLP were treated as a corporation
for federal income tax purposes, such MLP would be obligated to pay federal income tax on its income at the corporate tax rate.
If an MLP were classified as a corporation for federal income tax purposes, the amount of cash available for distribution by the
MLP would be reduced and distributions received by an Underlying Fund would be taxed under federal income tax laws applicable
to corporate dividends (as dividend income, return of capital, or capital gain). Therefore, treatment of an MLP as a corporation
for federal income tax purposes would result in a reduction in the after-tax return to an Underlying Fund, likely causing a reduction
in the value of the Common Shares.
Micro-,
Small- and Medium-Sized Company Risks
The
Underlying Funds may invest in securities without regard to market capitalization. Investments in securities of micro-, small-and
medium-sized companies may be subject to more abrupt or erratic market movements than larger, more established companies, because
these securities typically are traded in lower volume and issuers are typically more subject to changes in earnings and future
earnings prospects. Small- and medium-sized companies often have narrower markets for their goods and/or services and more limited
managerial and financial resources than larger, more established companies. Furthermore, these companies often have limited product
lines, services, markets or financial resources, or are dependent on a small management group. Since these stocks are not well-known
to the investing public, do not have significant institutional ownership and are followed by relatively few security analysts,
there will normally be less publicly available information concerning these securities compared to what is available for the securities
of larger companies. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, can decrease the
value and liquidity of securities held by the Fund. As a result, small- and medium-sized companies’ performance can be more
volatile and the companies face greater risk of business failure, which could increase the volatility of the Fund’s portfolio.
The risks are intensified for investments in micro-cap companies.
Options
and Futures Risks
The
Fund and the Underlying Funds may invest in options and futures contracts. The use of futures and options transactions entails
certain special risks. In particular, the variable degree of correlation between price movements of futures contracts and price
movements in the related securities position of the Fund or an Underlying Fund could create the possibility that losses on the
hedging instrument are greater than gains in the value of the Fund’s or Underlying Fund’s position. In addition, futures
and options markets could be illiquid in some circumstances and certain over-the-counter options could have no markets. As a
result, in certain markets, the Fund or an Underlying Fund might not be able to close out a transaction without incurring substantial
losses. Although the Fund’s or an Underlying Fund’s use of futures and options transactions for hedging should tend
to minimize the risk of loss due to a decline in the value of the hedged position, at the same time it will tend to limit any
potential gain to the Fund or an Underlying Fund that might result from an increase in value of the position. There is also the
risk of loss by the Fund or an Underlying Fund of margin deposits in the event of bankruptcy of a broker with whom the Fund or
Underlying Fund has an open position in a futures contract or option thereon. Finally, the daily variation margin requirements
for futures contracts create a greater ongoing potential financial risk than would purchases of options, in which case the exposure
is limited to the cost of the initial premium. However, because option premiums paid by the Fund or an Underlying Fund are small
in relation to the market value of the investments underlying the options, buying options can result in large amounts of leverage.
This leverage offered by trading in options could cause the Fund’s or an Underlying Fund’s NAV to be subject to more
frequent and wider fluctuation than would be the case if the Fund or Underlying Fund did not invest in options.
Options
transactions may be effected on securities exchanges or in the over-the-counter market. When options are purchased over-the-counter,
the Fund or an Underlying Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform
its obligations under the option contract. The counterparties to these transactions typically will be major international banks,
broker-dealers and financial institutions. Such options may also be illiquid, and in such cases, the Fund or an Underlying Fund
may have difficulty closing out its position. Banks, broker- dealers or other financial institutions participating in such transactions
may fail to settle a transaction in accordance with the terms of the option as written. In the event of default or insolvency
of the counterparty, the Fund or an Underlying Fund may be unable to liquidate an over-the-counter option position.
The
Fund may purchase put options. An Underlying Fund may purchase and sell call and put options with respect to specific securities,
and may write and sell covered or uncovered call and put options. A call option gives the purchaser of the call option, in return
for a premium paid, the right to buy the security underlying the option from the writer of the call option at a specified exercise
price within a specified time frame. A put option gives the purchaser of the put option, in return for a premium paid, the right
to sell the underlying security to the writer of the put option at a specified price within a specified time frame. A covered
call option is a call option with respect to an underlying security that a fund owns. A covered put option is a put option with
respect to which a fund has segregated cash or liquid securities to fulfill the obligation of the option. The purchaser of a put
or call option runs the risk of losing the purchaser’s entire investment, paid as the premium, in a relatively short period
of time if the option is not sold at a gain or cannot be exercised at a gain prior to expiration. In selling put options, there
is a risk that the Underlying Fund may be required to buy the underlying security at a disadvantageous price above the market
price. The un-covered writer of a call option is subject to a risk of loss if the price of the underlying security should increase,
and the un-covered writer of a put option is subject to a risk of loss if the price of the underlying security should decrease.
The
Fund may invest a significant portion of its total assets in Underlying Funds that write covered call options. To the extent that
an Underlying Fund writes a covered call option, it forgoes, during the option’s life, the opportunity to profit from increases
in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but
has retained the risk of loss should the price of the underlying security decline. As the writer of the option, the Underlying
Fund bears the market risk of an unfavorable change in the price of the security underlying a written option. As an Underlying
Fund writes covered calls over more of its portfolio, its ability to benefit from capital appreciation becomes more limited and
the risk of NAV erosion increases. To the extent an Underlying Fund experiences NAV erosion (which itself may have an indirect
negative effect on the market price of interests in the Underlying Fund), the Underlying Fund will have a reduced asset base over
which to write covered calls, which may eventually lead to reduced distributions to shareholders such as the Fund. The writer
of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once an
option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation
under the option and must deliver the underlying security at the exercise price.
To
the extent that an Underlying Fund engages in selling options that trade in over-the-counter markets, the Underlying Fund may
be subject to additional risks. Participants in these markets are typically not subject to the same credit evaluation and regulatory
oversight as members of “exchange based” markets. By engaging in option transactions in these markets, an Underlying
Fund may take credit risk with regard to parties with which it trades and also may bear the risk of settlement default. These
risks may differ materially from those involved in exchange-traded transactions, which generally are characterized by clearing
organization guarantees, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable
to intermediaries. Transactions entered into directly between two counterparties generally do not benefit from these protections,
which may subject an Underlying Fund to the risk that a counterparty will not settle a transaction in accordance with agreed terms
and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such “counterparty
risk” is increased for contracts with longer maturities when events may intervene to prevent settlement.
The
Fund or an Underlying Fund may enter into futures contracts in U.S. domestic markets or on exchanges located outside of the United
States. Foreign markets may offer advantages, including trading opportunities or arbitrage possibilities, not available in the
United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges
are principal markets, so that no common clearing facility exists and an investor may look only to the broker or counterparty
for the performance of the contract. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is
not regulated by the Commodity Futures Trading Commission.
There
can be no assurance that a liquid market will exist for any particular futures contract at any particular time. Many futures exchanges
and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the
daily limit has been reached in a particular contract, no trades may be made that day of a price beyond that limit or trading
may be suspended for specified periods during the trading day.
The
Fund or an Underlying Fund may purchase and sell single stock futures, stock index futures contracts, interest rate futures contracts,
currency futures and other commodity futures. A stock index future obligates a fund to pay or receive an amount of cash based
upon the value of a stock index at a specified date in the future. An interest rate futures contract obligates a fund to purchase
or sell an amount of a specific debt security at a future date at a specified price. A currency futures contract obligates a fund
to purchase or sell an amount of a specific currency at a future date at a future price.
If
the Fund or an Underlying Fund purchases an option and the price of the underlying stock fails to move in the expected direction,
the Fund or Underlying Fund will lose most or all of the amount the fund paid for the option, plus commission costs. If an Underlying
Fund writes (“sells”) an option and the price of the underlying stock fails to move in the expected direction, the
Underlying Fund’s losses could easily exceed the proceeds it received when it wrote the options.
Private
Debt Risk
The
Fund may invest in debt issued by non-listed funds and BDCs (“Private Debt”). Private Debt often may be illiquid and
is typically not listed on an exchange and traded less actively than similar securities issued by publicly traded-vehicles. For
certain Private Debt investments, trading may only be possible through the assistance of the broker who originally brought the
security to the market and has a relationship with the issuer. Due to the limited trading market, independent pricing services
may be unable to provide a price for Private Debt, and as such the fair value of the securities may be determined in good faith
under procedures approved by the Board, which typically will include the use of one or more independent broker quotes.
Real
Estate Investment Trust (“REIT”) Risks
The
Underlying Funds may invest in equity and mortgage REITs. Equity REITs invest in real estate, and mortgage REITs invest in loans
secured by real estate. Investing in REITs involves certain unique risks in addition to those risks associated with investing
in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned
by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management
skills, are not diversified, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs also
are subject to the possibilities of failing to qualify for tax free pass-through of income under the Internal Revenue Code of
1986, as amended (the “Code”), and failing to maintain their exemption from registration under the 1940 Act. Investment
in REITs involves risks similar to those associated with investing in small capitalization companies, and REITs (especially mortgage
REITs) are subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations
can be expected to rise. Conversely, when interest rates rise, the value of a REIT’s investment in fixed rate obligations
can be expected to decline. By investing in REITs directly or indirectly through the Underlying Funds, the Fund will indirectly
bear its proportionate share of the expenses of the REITs. The expenses at the REIT level are not included in the Fund’s
expense table as acquired fund fees and expenses.
Securities
Lending Risks
The
Underlying Funds may engage in securities lending. Securities lending involves counterparty risk, including the risk that the
loaned securities may not be returned in a timely manner and/or a loss of rights in the collateral if the borrower or the lending
agent defaults. This risk is increased when an Underlying Fund’s loans are concentrated with a single or limited number
of borrowers. In addition, an Underlying Fund bears the risk of loss in connection with the investments of the cash collateral
it receives from the borrower. To the extent that the value or return of an Underlying Fund’s investments of the cash collateral
declines below the amount owed to a borrower, the Underlying Fund may incur losses that exceed the amount it earned in lending
the security.
Securities
Risks
The
value of the Fund or an Underlying Fund may decrease in response to the activities and financial prospects of individual securities
in the Fund’s portfolio.
Senior
Loan Risks
The
Underlying Funds may invest in senior secured floating rate and fixed-rate loans (“Senior Loans”). There is less readily
available and reliable information about most Senior Loans than is the case for many other types of instruments, including listed
securities. Senior Loans are not listed on any national securities exchange or automated quotation system and as such, many Senior
Loans are illiquid, meaning that an Underlying Fund may not be able to sell them quickly at a fair price. To the extent that a
secondary market does exist for certain Senior Loans, the market is more volatile than for liquid, listed securities and may be
subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. The market for Senior Loans
could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior Loans,
like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a Senior
Loan will result in a reduction of income to the Fund, a reduction in the value of the Senior Loan and a potential decrease in
the Fund’s NAV of the Common Shares.
The
Underlying Funds may acquire or hold Senior Loans of borrowers that are experiencing, or are more likely to experience, financial
difficulty, including Senior Loans issued to highly leveraged borrowers or borrowers that have filed for bankruptcy protection.
Borrowers may have outstanding debt obligations, including Senior Loans, that are rated below investment grade. An Underlying
Fund may invest a substantial portion of its assets in Senior Loans that are rated below investment grade or that are unrated
at the time of purchase but are deemed by the Underlying Fund’s adviser’s to be of comparable quality. The values
of Senior Loans of borrowers that have filed for bankruptcy protection or that are experiencing payment difficulty could be affected
by, among other things, the assessment of the likelihood that the lenders ultimately will receive repayment of the principal amount
of such Senior Loans, the likely duration, if any, of a lapse in the scheduled payment of interest and repayment of principal
and prevailing interest rates. There is no assurance that an Underlying Fund will be able to recover any amount on Senior Loans
of such borrowers or that sale of the collateral granted in connection with Senior Loans would raise enough cash to satisfy the
borrower’s payment obligation or that the collateral can or will be liquidated. In the event of bankruptcy, liquidation
may not occur and the bankruptcy court may not give lenders the full benefit of their senior position in the capital structure
of the borrower.
Short
Sale Risks
The
Fund and Underlying Funds may sell securities short. Positions in shorted securities are speculative and more risky than long
positions (purchases) in securities because the maximum sustainable loss on a security purchased is limited to the amount paid
for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore,
in theory, securities sold short have unlimited risk. Short selling will also result in higher transaction costs (such as interest
and dividends), directly or indirectly through the investments in Underlying Funds, and may result in higher taxes, which reduce
the Fund’s return.
If
a security sold short increases in price, a fund may have to cover its short position at a higher price than the short sale price,
resulting in a loss. With respect to a fund’s short positions, the Fund must borrow those securities to make delivery to
the buyer. A fund may not be able to borrow a security that it needs to deliver or it may not be able to close out a short position
at an acceptable price and may have to sell related long positions before it had intended to do so. As a result, a fund may not
be able to successfully implement its short sale strategy due to the limited availability of desired securities or for other reasons.
When
borrowing a security for delivery to a buyer, a fund also may be required to pay a premium and other transaction costs, which
would increase the cost of the security sold short. A fund must normally repay to the lender an amount equal to any dividends
or interest earned while the loan is outstanding. The amount of any gain will be decreased, and the amount of any loss increased,
by the amount of the premium, dividends, interest or expenses a fund may be required to pay in connection with the short sale.
Also, the lender of a security may terminate the loan at a time when a fund is unable to borrow the same security for delivery.
In that case, a fund would need to purchase a replacement security at the then current market price or “buy in” by
paying the lender an amount equal to the costs of purchasing the security.
Until
a fund replaces a borrowed security, it is required to maintain a segregated account of cash or liquid assets to cover the fund’s
short position. Securities held in a segregated account cannot be sold while the position they are covering is outstanding, unless
they are replaced with similar securities. Additionally, a fund must maintain sufficient liquid assets (less any additional collateral
held by the broker), marked-to-market daily, to cover its short sale obligations. This may limit a fund’s investment flexibility,
as well as its ability to meet redemption requests or other current obligations.
In
addition, until a fund replaces a borrowed instrument, a fund may also be required to maintain short sale proceeds with the lending
broker as collateral. Moreover, a fund will be required to make margin payments to the lender during the term of the borrowing
if the value of the security it borrowed (and sold short) increases. Thus, short sales involve credit exposure to the broker that
executes the short sales. In the event of the bankruptcy or other similar insolvency with respect to a broker with whom a fund
has an open short position, a fund may be unable to recover, or be delayed in recovering, any margin or other collateral held
with or for the lending broker.
Because
a fund’s loss on a short sale arises from increases in the value of the security sold short, the loss is theoretically unlimited.
In certain cases, purchasing a security to cover a short position can itself cause the price of the security to rise further,
which would exacerbate the loss. Conversely, gains on short sales, after transaction and related costs, are generally the difference
between the price at which a fund sold the borrowed security and the price it paid to purchase the security for delivery to the
buyer. By contrast, a fund’s loss on a long position arises from decreases in the value of the security and is limited by
the fact that a security’s value cannot drop below zero.
By
investing the proceeds received from selling securities short, the Fund is using a form of leverage, which creates special risks.
The use of leverage may increase the Fund’s exposure to long equity positions and make any change in the Fund’s NAV
greater than it would be without the use of leverage. This could result in increased volatility of returns. There is no guarantee
that the Fund will leverage its portfolio, or if it does, that the Fund’s leveraging strategy will be successful. The Fund
also cannot guarantee that the use of leverage will produce a higher return on an investment.
SOFR
Risk
SOFR
is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S. Treasury
securities. SOFR is calculated based on transaction-level repodata collected from various sources. For each trading day, SOFR
is calculated as a volume-weighted median rate derived from such data. SOFR is calculated and published by the Federal Reserve
Bank of New York (“FRBNY”). If data from a given source required by the FRBNY to calculate SOFR is unavailable for
any day, then the most recently available data for that segment will be used, with certain adjustments. If errors are discovered
in the transaction data or the calculations underlying SOFR after its initial publication on a given day, SOFR may be republished
at a later time that day. Rate revisions will be effected only on the day of initial publication and will be republished only
if the change in the rate exceeds one basis point.
Because
SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR was intended
to be an unsecured rate that represents interbank funding costs for different short-term maturities or tenors. It was a forward-looking
rate reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR was intended to be sensitive, in certain
respects, to bank credit risk and to term interest rate risk. In contrast, SOFR is a secured overnight rate reflecting the credit
of U.S. Treasury securities as collateral. Thus, it is largely insensitive to credit-risk considerations and to short-term interest
rate risks. SOFR is a transaction-based rate, and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR,
will perform in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates
will be a suitable substitute for LIBOR. SOFR has a limited history, having been first published in April 2018. The future performance
of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s history or otherwise. Levels of SOFR in the
future, including following the discontinuation of LIBOR, may bear little or no relation to historical levels of SOFR, LIBOR or
other rates. The inclusion of SOFR Risk is a change since the prior disclosure date.
Special
Purpose Acquisition Companies Risks
The
Fund may invest in SPACs. SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities.
Unless and until an acquisition is completed, a SPAC generally invests its assets (less an amount to cover expenses) in U.S. government
securities, money market fund securities and cash. SPACs and similar entities may be blank check companies with no operating history
or ongoing business other than to seek a potential acquisition. Accordingly, the value of their securities is particularly dependent
on the ability of the entity’s management to identify and complete a profitable acquisition. Certain SPACs may seek acquisitions
only in limited industries or regions, which may increase the volatility of their prices. If an acquisition that meets the requirements
for the SPAC is not completed within a predetermined period of time, the invested funds are returned to the entity’s shareholders.
Investments in SPACs may be illiquid and/or be subject to restrictions on resale. To the extent the SPAC is invested in cash or
similar securities, this may impact the Fund’s ability to meet its investment objective.
The
officers and directors of a SPAC may operate multiple SPACs and could have conflicts of interest in determining to which SPAC
a particular business opportunity should be presented. In such circumstances, there can be no assurance that a given business
opportunity would be presented to the SPAC in which the Fund holds an investment.
Structured
Notes Risks
The
Underlying Funds may invest in structured notes. Structured notes are subject to a number of fixed income risks including general
market risk, interest rate risk, and the risk that the issuer on the note may fail to make interest and/or principal payments
when due, or may default on its obligations entirely. In addition, because the performance of structured notes tracks the performance
of the underlying debt obligation, structured notes generally are subject to more risk than investing in a simple note or bond
issued by the same issuer. It is impossible to predict whether the referenced factor (such as an index or interest rate) or prices
of the underlying securities will rise or fall. To the extent that an Underlying Fund invests in structured notes, the Underlying
Fund may be more volatile than other funds that do not invest in structured notes. The actual trading prices of structured notes
may be significantly different from the principal amount of the notes. If an Underlying Fund sells the structured notes prior
to maturity, it may suffer a loss of principal. At final maturity, structured notes may be redeemed in cash or in kind, which
is at the discretion of the issuer. If the notes are redeemed in kind, a fund would receive shares of stock at a depressed price.
To the extent that a structured note is not principal-protected through an insurance feature, the note’s principal will
not be protected. In the case of a decrease in the value of the underlying asset, an Underlying Fund would receive shares at a
value less than the original amount invested; while an increase in the value of an underlying asset will not increase the return
on the note.
Swap
Risks
The
Fund and the Underlying Funds may enter into interest rate, index, total return and currency swap agreements. Swap agreements
are two-party contracts under which the fund and a counterparty, such as a broker or dealer, agree to exchange the returns (or
differentials in rates of return) earned or realized on an agreed-upon underlying asset or investment over the term of the swap.
The use of swap transactions is a highly specialized activity which involves strategies and risks different from those associated
with ordinary portfolio security transactions. If the Adviser or an Underlying Fund’s investment adviser is incorrect in
its forecasts of default risks, market spreads, liquidity or other applicable factors or events, the investment performance of
the Fund or Underlying Fund would diminish compared with what it would have been if these techniques were not used. Swaps and
swap options can be used for a variety of purposes, including: to manage fund exposure to changes in interest or foreign currency
exchange rates and credit quality; as an efficient means of adjusting fund overall exposure to certain markets; in an effort to
enhance income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust
portfolio duration.
There
are risks in the use of swaps. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes
are not correctly anticipated. Total return swaps could result in losses if the reference index, security, or investments do not
perform as anticipated. Total return swaps involve an enhanced risk that the issuer or counterparty will fail to perform its contractual
obligations. Total return swaps may effectively add leverage to the Fund’s portfolio because the Fund would be subject to
investment exposure on the full notional amount of the swap. To the extent the Fund or an Underlying Fund enters into a total
return swap on equity securities, the Fund or the Underlying Fund will receive the positive performance of a notional amount of
such securities underlying the total return swap. In exchange, the Fund or the Underlying Fund will be obligated to pay the negative
performance of such notional amount of securities. Therefore, the Fund or the Underlying Fund assumes the risk of a substantial
decrease in the market value of the equity securities. The use of swaps may not always be successful; using them could lower fund
total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed the fund’s initial
investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out
the fund’s investment at a reasonable price, which could turn an expected gain into a loss.
Currently,
certain categories of interest rate swaps are subject to mandatory clearing, and more are expected to be cleared in the future.
The counterparty risk for cleared derivatives is generally expected to be lower than for uncleared over-the-counter derivative
transactions as each party to a transaction looks only to the central clearing house for performance of obligations under the
transaction. However, there can be no assurance that a clearing house, or its members, will satisfy the clearing house’s
obligations to the fund or that the fund’s use of swaps will be advantageous.
Underlying
Fund Risks
The
Fund will invest in Underlying Funds such as other closed-end funds and ETFs. The expenses of the Fund will generally be higher
than the direct expenses of other fund shares. The Fund will indirectly bear fees and expenses charged by the Underlying Funds
in which the Fund invests in addition to the Fund’s direct fees and expenses. The Fund may also incur brokerage costs when
it purchases shares of Underlying Funds. Furthermore, investments in Underlying Funds could affect the timing, amount and character
of distributions to Common Stockholders and therefore may increase the amount of taxes payable by investors in the Fund. The value
of your investment in the Fund will go up and down with the prices of Underlying Fund shares (and other securities) in which the
Fund invests. Similarly, the value of the Fund’s investments in Underlying Funds will go up and down with the prices of
the securities in which the Underlying Funds invest.
There
is also the risk that the Fund may suffer losses due to the investment practices or operations of the Underlying Funds. To the
extent that the Fund invests in one or more Underlying Funds that concentrate in a particular industry, the Fund would be vulnerable
to factors affecting that industry and the concentrating Underlying Funds’ performance, and that of the Fund, may be more
volatile than Underlying Funds that do not concentrate.
As
the Fund will invest at least 80% of its Managed Assets in Underlying Funds, the Fund’s performance will depend to a greater
extent on the overall performance of closed-end funds, ETFs, BDCs and SPACs generally, in addition to the performance of the specific
Underlying Funds (and other assets) in which the Fund invests. The use of leverage by Underlying Funds magnifies gains and losses
on amounts invested and increases the risks associated with investing in Underlying Funds. Further, the Underlying Funds are not
subject to the Fund’s investment policies and restrictions. The Fund generally receives information regarding the portfolio
holdings of Underlying Funds only when that information is made available to the public. The Fund cannot dictate how the Underlying
Funds invest their assets. The Underlying Funds may invest their assets in securities and other instruments, and may use investment
techniques and strategies, that are not described in this disclosure. Common Stockholders will bear two layers of fees and expenses
with respect to the Fund’s investments in Underlying Funds because each of the Fund and the Underlying Fund will charge
fees and incur separate expenses. In addition, subject to applicable 1940 Act limitations, the Underlying Funds themselves may
purchase securities issued by registered and unregistered funds (e.g., common stock, preferred stock, auction rate preferred stock),
and those investments would be subject to the risks associated with Underlying Funds and unregistered funds (including a third
layer of fees and expenses, i.e., the Underlying Fund will indirectly bear fees and expenses charged by the funds in which the
Underlying Fund invests, in addition to the Underlying Fund’s own fees and expenses). An Underlying Fund with positive performance
may indirectly receive a performance fee from the Fund, even when the Fund’s overall returns are negative. Additionally,
the Fund’s investment in an Underlying Fund may result in the Fund’s receipt of cash in excess of the Underlying Fund’s
earnings; if the Fund distributes these amounts, the distributions could constitute a return of capital to Fund shareholders for
federal income tax purposes. As a result of these factors, the use of the fund of funds structure by the Fund could therefore
affect the amount, timing and character of distributions to shareholders.
The
Fund may invest in shares of closed-end funds that are trading at a discount to NAV or at a premium to NAV and closed-end funds
may not be able to outperform their benchmarks. There can be no assurance that the market discount on shares of any closed-end
fund purchased by the Fund will ever decrease. In fact, it is possible that this market discount may increase and the Fund may
suffer realized or unrealized capital losses due to further decline in the market price of the securities of such closed-end funds,
thereby adversely affecting the Fund’s NAV. The Fund’s investment in the Common Shares of closed-end funds that are
financially leveraged may create an opportunity for greater total return on its investment, but at the same time may be expected
to exhibit more volatility in market price and NAV than an investment in shares of investment companies without a leveraged capital
structure.
The
Fund may invest in BDCs. BDCs generally invest in less mature U.S. private companies or thinly traded U.S. public companies which
involve greater risk than well-established publicly-traded companies. While BDCs are expected to generate income in the form of
dividends, certain BDCs during certain periods of time may not generate such income. The Fund will indirectly bear its proportionate
share of any management fees and other operating expenses incurred by the BDCs and of any performance-based or incentive fees
payable by the BDCs in which it invests, in addition to the expenses paid by the Fund. A BDC’s incentive fee may be very
high, vary from year to year and be payable even if the value of the BDC’s portfolio declines in a given time period. Incentive
fees may create an incentive for a BDC’s manager to make investments that are risky or more speculative than would be the
case in the absence of such compensation arrangements, and may also encourage the BDC’s manager to use leverage to increase
the return on the BDC’s investments. The use of leverage by BDCs magnifies gains and losses on amounts invested and increases
the risks associated with investing in BDCs. A BDC may make investments with a larger amount of risk of volatility and loss of
principal than other investment options and may also be highly speculative and aggressive.
The
1940 Act imposes certain constraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their
total assets primarily in securities of U.S. private companies or thinly traded U.S. public companies, cash, cash equivalents,
U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information
exists for private and thinly traded companies in which a BDC may invest and there is a risk that investors may not be able to
make a fully informed evaluation of a BDC and its portfolio of investments. With respect to investments in debt instruments, there
is a risk that the issuers of such instruments may default on their payments or declare bankruptcy. Many debt investments in which
a BDC may invest will not be rated by a credit rating agency and will be below investment grade quality. These investments are
commonly referred to as “junk bonds” and have predominantly speculative characteristics with respect to an issuer’s
capacity to make payments of interest and principal. Although lower grade securities are potentially higher yielding, they are
also characterized by high risk. In addition, the secondary market for lower grade securities may be less liquid than that of
higher rated securities. Certain BDCs may also be difficult to value since many of the assets of BDCs do not have readily ascertainable
market values.
Additionally,
a BDC may only incur indebtedness in amounts such that the BDC’s asset coverage ratio of total assets to total senior securities
equals at least 200% after such incurrence. These limitations on asset mix and leverage may affect the way that the BDC raises
capital. BDCs compete with other entities for the types of investments they make, and such entities are not necessarily subject
to the same investment constraints as BDCs.
Index-based
ETFs (and other index funds) in which the Fund may invest may not be able to replicate exactly the performance of the indices
they track or benchmark because the total return generated by the securities will be reduced by transaction costs incurred in
adjusting the actual balance of the securities. ETFs may trade at a price above (premium) or below (discount) their NAV, especially
during periods of significant market volatility or stress, causing investors to pay significantly more or less than the value
of the ETF’s underlying portfolio. Certain ETFs traded on exchanges may be thinly traded and experience large spreads between
the “ask” price quoted by a seller and the “bid” price offered by a buyer. While the creation/redemption
feature is designed to make it likely that ETF shares normally will trade close to their NAVs, market prices are not expected
to correlate exactly to the shares’ NAVs due to timing reasons, supply and demand imbalances and other factors. In addition,
disruptions to creations and redemptions, adverse developments impacting market makers, authorized participants or other market
participants, high market volatility or lack of an active trading market for an ETF’s shares (including through a trading
halt) may result in market prices that differ significantly from its NAV or to the intraday value of the ETF’s holdings.
An active trading market for shares of an ETF may not develop or be maintained. When all or a portion of an ETF’s underlying
securities trade in a foreign market that is closed during the time the domestic market in which the ETF’s shares are listed
and traded is open, there may be changes between the last quote from the closed foreign market and the value of such underlying
security during the ETF’s trading day.
In
times of market stress, market makers or authorized participants may step away from their respective roles in making a market
in shares of the ETF and in executing purchase or redemption orders. During such times, the ETF’s shares may trade at a
wider than normal discount or premium and may possibly face trading halts. Additionally, the underlying securities of an ETF may
be traded outside of a collateralized settlement system, such as the National Securities Clearing Corporation, a clearing agency
that is registered with the SEC. There are a limited number of financial institutions that may act as authorized participants
that pose collateral for certain trades on an agency basis. To the extent that these authorized participants exit the business
or are unable to proceed with creation and/or redemption orders with the ETF, and no other authorized participant is able to step
forward, ETF shares may trade at a discount to NAV and possibly face trading halts and/or delisting. Additionally, in stressed
market conditions, the market for ETF shares may become less liquid in response to deteriorating liquidity in the markets for
such ETF’s underlying portfolio holdings, and this may cause the shares of the ETF to trade at a wider than normal discount
or premium. Furthermore, purchases and redemptions of creation units primarily in cash rather than in-kind may cause an ETF to
incur certain costs, such as brokerage costs, taxable gains or other losses that it may not have incurred with an in-kind purchase
or redemption. These costs may be borne by the ETF and decrease the ETF’s NAV to the extent they are not offset by a transaction
fee payable by an authorized participant.
In
addition, index-based ETFs (and other index funds) will incur expenses not incurred by their applicable indices. Certain securities
comprising the indices tracked by these investments may, from time to time, temporarily be unavailable, which may further impede
the ability of the index-based ETFs and other index funds to track their applicable indices. Underlying Funds may not be able
to match or outperform their respective benchmarks. With sector ETFs, there is a risk that securities within the same group of
industries will decline in price due to sector-specific market or economic developments. The Fund may also invest in actively
managed ETFs that are subject to management risk as the ETF’s investment adviser will apply certain investment techniques
and risk analyses in making investment decisions. There can be no guarantee that these will produce the desired results.
Certain
of the Underlying Funds in which the Fund will invest may be taxed as regulated investment companies under Subchapter M of the
Code. To qualify and remain eligible for the special tax treatment accorded to regulated investment companies and their shareholders,
such Underlying Funds must meet certain source-of-income, asset diversification and annual distribution requirements. If an Underlying
Fund in which the Fund invests fails to qualify as a regulated investment company, such Underlying Fund would be liable for federal,
and possibly state, corporate taxes on its taxable income and gains. Such failure by an Underlying Fund could substantially reduce
the Underlying Fund’s net assets and the amount of income available for distribution to the Fund, which would in turn decrease
the total return of the Fund in respect of such investment.
The
Fund’s investments in Underlying Funds may be restricted by certain provisions of the 1940 Act. Under Section 12(d)(1)(A)
of the 1940 Act, the Fund may hold securities of an Underlying Fund in amounts which (i) do not exceed 3% of the total outstanding
voting stock of the Underlying Fund, (ii) do not exceed 5% of the value of the Fund’s total assets and (iii) when added
to all other Underlying Fund securities held by the Fund, do not exceed 10% of the value of the Fund’s total assets. Under
Section 12(d)(1)(C) of the 1940 Act, the Fund, together with any other investment companies for which the Adviser acts as an investment
adviser, may not, in the aggregate, own more than 10% of the total outstanding voting stock of a registered closed-end investment
company. Section 12(d)(1)(F) of the 1940 Act provides that the limitations of Section 12(d)(1) described above shall not apply
to securities purchased or otherwise acquired by the Fund if (i) immediately after such purchase or acquisition not more than
3% of the total outstanding stock of such Underlying Fund is owned by the Fund and all affiliated persons of the Fund, and (ii)
certain requirements are met with respect to sales charges. In addition, Rule 12d1-4 under the 1940 Act (“Rule 12d1-4”),
effective as of January 19, 2022, permits the Fund to invest in Underlying Funds beyond the limitations of Section 12(d)(1) described
above, subject to various conditions, including that the Fund enter into an investment agreement with the Underlying Fund (which
agreements may impose additional conditions on the Fund). In matters upon which the Fund is solicited to vote as a shareholder
of an Underlying Fund, the Adviser may be required to vote Underlying Fund shares in the same proportion as shares held by other
shareholders of the Underlying Fund.
Warrant
Risks
The
Fund and the Underlying Funds may invest in warrants. Warrants are securities giving the holder the right, but not the obligation,
to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a
specified period or perpetually. Warrants do not carry with them the right to dividends or voting rights with respect to the securities
that they entitle their holder to purchase and they do not represent any rights in the assets of the issuer. The value of a warrant
does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised
prior to its expiration date.
|
Effects of Leverage [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Effects
of Leverage
The
following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on total
return on common shares, assuming investment portfolio total returns (comprised of income, net expenses and changes in the value
of investments held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects the Fund's continued
use of Preferred Shares as of July 31, 2023 as a percentage of total managed assets (including assets attributable to such leverage),
and the annual return that the Fund's portfolio must experience (net of expenses) in order to cover such costs. These assumed
investment portfolio returns are hypothetical figures and are not necessarily indicative of what the Fund’s investment portfolio
returns will be. In other words, the Fund’s actual returns may be greater or less than those appearing in the table below.
The table further reflects the use of leverage representing approximately 27.02% of the Fund’s Managed Assets and estimated
leverage costs of 6.00%.
Assumed Portfolio Return |
-10.00% |
-5.00% |
0.00% |
5.00% |
10.00% |
Common Share Total Return |
-15.92% |
-9.07% |
-2.22% |
4.63% |
11.48% |
Total
return is composed of two elements—the dividends on common shares paid by the Fund (the amount of which is largely determined
by the Fund’s net investment income after paying the cost of leverage) and realized and unrealized gains or losses on the
value of the securities the Fund owns. As the table shows, leverage generally increases the return to common shareholders when
portfolio return is positive or greater than the costs of leverage and decreases return when the portfolio return is negative
or less than the costs of leverage.
During
the time in which the Fund is using leverage, the amount of the fees paid to the Adviser for investment management services is
higher than if the Fund did not use leverage because the fees paid are calculated based on the Fund’s Managed Assets. This
may create a conflict of interest between the Adviser, on the one hand, and common shareholders, on the other. Also, because the
leverage costs are borne by the Fund at a specified interest rate, only the Fund’s common shareholders bear the cost of
the Fund’s management fees and other expenses. There can be no assurance that a leveraging strategy will be successful during
any period in which it is employed.
|
Effects of Leverage [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Assumed Portfolio Return |
-10.00% |
-5.00% |
0.00% |
5.00% |
10.00% |
Common Share Total Return |
-15.92% |
-9.07% |
-2.22% |
4.63% |
11.48% |
|
Effects of Leverage, Purpose [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
The
following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on total
return on common shares, assuming investment portfolio total returns (comprised of income, net expenses and changes in the value
of investments held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects the Fund's continued
use of Preferred Shares as of July 31, 2023 as a percentage of total managed assets (including assets attributable to such leverage),
and the annual return that the Fund's portfolio must experience (net of expenses) in order to cover such costs. These assumed
investment portfolio returns are hypothetical figures and are not necessarily indicative of what the Fund’s investment portfolio
returns will be. In other words, the Fund’s actual returns may be greater or less than those appearing in the table below.
The table further reflects the use of leverage representing approximately 27.02% of the Fund’s Managed Assets and estimated
leverage costs of 6.00%.
|
Share Price [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended |
Market
Price |
NAV
at |
Market
Premium (Discount) to NAV at |
|
|
High |
Low |
Market High |
Market Low |
Market High |
Market Low |
2023 |
July 31 |
$11.51 |
$10.96 |
$12.32 |
$12.23 |
-6.57% |
-10.38% |
|
April 30 |
$12.50 |
$10.89 |
$12.82 |
$12.24 |
-2.50% |
-11.03% |
|
January 31 |
$13.29 |
$11.74 |
$12.73 |
$12.30 |
4.40% |
-4.55% |
2022 |
October 31 |
$15.20 |
$11.85 |
$13.82 |
$12.29 |
9.99% |
-3.58% |
|
July 31 |
$15.10 |
$12.56 |
$14.06 |
$13.01 |
7.40% |
-3.46% |
|
April 30 |
$16.68 |
$14.78 |
$15.87 |
$15.31 |
5.10% |
-3.46% |
|
January 31 |
$17.69 |
$14.86 |
$17.09 |
$15.64 |
3.51% |
-4.99% |
2021 |
October 31 |
$18.75 |
$16.71 |
$17.12 |
$16.87 |
9.52% |
-0.95% |
|
July 31 |
$18.75 |
$16.75 |
$17.24 |
$17.02 |
8.76% |
-1.59% |
|
April 30 |
$17.88 |
$16.71 |
$17.23 |
$16.61 |
3.77% |
0.60% |
|
January 31 |
$17.07 |
$13.81 |
$16.48 |
$14.53 |
3.58% |
-4.96% |
|
Not a Complete Investment Program [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Not a Complete Investment
Program
The Fund
is intended for investors seeking capital appreciation and current income over the long-term, and is not intended to be a short-term
trading vehicle. An investment in the Common Shares of the Fund should not be considered a complete investment program. Each investor
should take into account the Fund’s investment objective and other characteristics as well as the investor’s other
investments when considering an investment in the Common Shares. An investment in the Fund may not be appropriate for all investors.
|
Risks Associated With Offerings Of Additional Common Shares [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Risks Associated with Offerings
of Additional Common Shares
The voting
power of current Common Stockholders will be diluted to the extent that current Common Stockholders do not purchase Common Shares
in any future offerings of Common Shares or do not purchase sufficient Common Shares to maintain their percentage interest. If
the Fund is unable to invest the proceeds of such offering as intended, the Fund’s per Common Share distribution may decrease
and the Fund may not participate in market advances to the same extent as if such proceeds were fully invested as planned. If
the Fund sells Common Shares at a price below NAV pursuant to the consent of Common Stockholders, shareholders will experience
a dilution of the aggregate NAV per Common Share because the sale price will be less than the Fund’s then-current NAV per
Common Share. Similarly, were the expenses of the offering to exceed the amount by which the sale price exceeded the Fund’s
then current NAV per Common Share, shareholders would experience a dilution of the aggregate NAV per Common Share. This dilution
will be experienced by all shareholders, irrespective of whether they purchase Common Shares in any such offering.
|
Additional Risks Of Rights [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Additional
Risks of Rights
There
are additional risks associated with an offering of subscription rights to purchase Common Shares (“Rights”). Shareholders
who do not exercise their Rights may, at the completion of such an offering, own a smaller proportional interest in the Fund than
if they exercised their Rights. As a result of such an offering, a shareholder may experience dilution in NAV per share if the
subscription price per share is below the NAV per share on the expiration date. If the subscription price per share is below the
NAV per share of the Fund’s Common Shares on the expiration date, a shareholder will experience an immediate dilution of
the aggregate NAV of such shareholder’s Common Shares if the shareholder does not participate in such an offering and the
shareholder will experience a reduction in the NAV per share of such shareholder’s Common Shares whether or not the shareholder
participates in such an offering. Such a reduction in NAV per share may have the effect of reducing market price of the Common
Share. The Fund cannot state precisely the extent of this dilution (if any) if the shareholder does not exercise such shareholder’s
Rights because the Fund does not know what the NAV per share will be when the offer expires or what proportion of the Rights will
be exercised. If the subscription price is substantially less than the then current NAV per Common Share at the expiration of
a rights offering, such dilution could be substantial. Any such dilution or accretion will depend upon whether (i) such shareholders
participate in the rights offering and (ii) the Fund’s NAV per Common Share is above or below the subscription price on
the expiration date of the rights offering. In addition to the economic dilution described above, if a Common Stockholder does
not exercise all of their rights, the Common Stockholders will incur voting dilution as a result of this rights offering. This
voting dilution will occur because the Common Stockholders will own a smaller proportionate interest in the Fund after the rights
offering than prior to the rights offering. There is a risk that changes in market conditions may result in the underlying Common
Shares purchasable upon exercise of the subscription rights being less attractive to investors at the conclusion of the subscription
period. This may reduce or eliminate the value of the subscription rights. If investors exercise only a portion of the rights,
the number of Common Shares issued may be reduced, and the Common Shares may trade at less favorable prices than larger offerings
for similar securities. Subscription rights issued by the Fund may be transferable or non-transferable rights. In a non-transferable
rights offering, Common Stockholders who do not wish to exercise their rights will be unable to sell their rights. In a transferrable
rights offering, the Fund will use its best efforts to ensure an adequate trading market for the rights; however, investors may
find that there is no market to sell rights they do not wish to exercise.
|
Leverage Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
Risks
The
Fund may borrow money, or issue debt or preferred stock. Since the holders of Common Shares pay all expenses related to the issuance
of debt or use of leverage, the use of leverage through borrowing of money, issuance of debt securities or the issuance of preferred
stock for investment purposes creates risks for the holders of Common Shares. Leverage is a speculative technique that exposes
the Fund to greater risk and increased costs than if it were not implemented. Increases and decreases in the value of the Fund’s
portfolio will be magnified when the Fund uses leverage. As a result, leverage may cause greater changes in the Fund’s NAV.
The Fund will also have to pay interest on its borrowings or dividends on preferred stock, if any, which may reduce the Fund’s
return. The leverage costs may be greater than the Fund’s return on the underlying investment. The Fund’s leveraging
strategy may not be successful.
If
the Fund utilizes leverage in the form of borrowing, it anticipates that the money borrowed for investment purposes will incur
interest based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides
a higher rate of return, net of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause
the holders of Common Shares to receive a higher current rate of return than if the Fund were not leveraged. If, however, long-term
and/or short-term rates rise, the interest rate on borrowed money could exceed the rate of return on securities held by the Fund,
reducing return to the holders of Common Shares.
There
is no assurance that a leveraging strategy will be successful. Leverage involves risks and special considerations for Common Stockholders,
including:
| • | the
likelihood of greater volatility of NAV, market price and dividend rate of the Common
Shares than a comparable portfolio without leverage; |
| • | the
risk that fluctuations in interest rates on borrowings or on short-term debt or in the
interest or dividend rates on any debt securities or preferred shares that the Fund must
pay will reduce the return to the Common Stockholders; |
| • | the
effect of leverage in a declining market, which is likely to cause a greater decline
in the NAV of the Common Shares than if the Fund were not leveraged, may result in a
greater decline in the market price of the Common Shares; |
| • | when
the Fund uses financial leverage, the investment management fees payable to the Adviser
will be higher than if the Fund did not use leverage. This may create a conflict of interest
between the Adviser, on the one hand, and the holders of Common Shares, on the other;
and |
| • | leverage
may increase operating costs, which may reduce total return. |
The
use of leverage may require the Fund to segregate assets to cover its obligations (or, if the Fund borrows money or issues preferred
shares, to maintain asset coverage in conformity with the requirements of the 1940 Act). While the segregated assets will be invested
in liquid securities, they may not be used for other operational purposes. Consequently, the use of leverage may limit the Fund’s
flexibility and may require that the Fund sell other portfolio investments to pay Fund expenses, to maintain assets in an amount
sufficient to cover the Fund’s leveraged exposure or to meet other obligations at a time when it may be disadvantageous
to sell such assets. Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements
relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments
imposed by guidelines of one or more rating agencies, which may issue ratings for the short-term debt securities or preferred
shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent
than those imposed by the 1940 Act. The Adviser does not believe that these covenants or guidelines will impede it from managing
the Fund’s portfolio in accordance with the Fund’s investment objective and policies if the Fund were to utilize leverage.
Leverage
risk would also apply to the Fund’s investments in Underlying Funds and SPACs to the extent an Underlying Fund or SPAC uses
leverage.
|
Market Discount [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Market
Discount
The
stock of closed-end management investment companies often trade at a discount from their NAV, and the Fund’s Common Shares
may likewise trade at a discount from NAV. The trading price of the Fund’s Common Shares may be less than the NAV. The returns
earned by Common Stockholders who sell their Common Shares below NAV will be reduced. The Fund’s Common Shares are currently
sold at a premium to NAV. This risk would also apply to the Fund’s investments in closed-end funds.
|
Anti Takeover Provisions [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Anti-Takeover
Provisions
Maryland
law and the Fund’s Charter and Bylaws include provisions that could limit the ability of other entities or persons to acquire
control of the Fund or to convert the Fund to open-end status. These provisions could deprive the holders of Common Shares of
opportunities to sell their Common Shares at a premium over the then current market price of the Common Shares or at NAV. This
risk would also apply to many of the Fund’s investments in closed-end funds.
|
Investment Related Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Investment-Related
Risks:
The
risks listed below are in alphabetical order. With the exception of Underlying Fund risk (and except as otherwise noted below),
the following risks apply to the direct investments the Fund may make, and generally apply to the Fund’s investments in
Underlying Funds and SPACs. That said, each risk described below may not apply to each Underlying Fund or SPAC investment. Similarly,
an Underlying Fund may be subject to additional or different risks than those described below.
|
Asset Allocation Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Allocation Risks
To
the extent that the Adviser’s asset allocation strategy may fail to produce the intended result, the Fund’s return
may suffer. Additionally, the active asset allocation style of the Fund leads to changing allocations over time and represents
a risk to investors who target fixed asset allocations.
|
Convertible Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
Securities Risks
The
market value of convertible securities tends to fall when prevailing interest rates rise. The value of convertible securities
also tends to change whenever the market value of the underlying common or preferred stock fluctuates. Convertible securities
tend to be of lower credit quality.
|
Defensive Measures [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Defensive
Measures
The
Fund may invest up to 100% of its assets in cash, cash equivalents and short-term investments as a defensive measure in response
to adverse market conditions or opportunistically at the discretion of the Adviser. During these periods or during periods when
an Underlying Fund invests defensively, the Fund may not be pursuing its investment objective.
|
Derivatives Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
Risks
The
Fund and the Underlying Funds may enter into derivatives transactions. Derivative transactions involve investment techniques and
risks different from those associated with investments in Underlying Funds. Generally, a derivative is a financial contract the
value of which depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and may relate to
individual debt or equity instruments, interest rates, currencies or currency exchange rates, commodities, related indexes, and
other assets. Derivatives can be volatile and involve various types and degrees of risk, depending upon the characteristics of
a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that
a small investment in a derivative could have a large potential impact on the performance of a fund. A fund could experience a
loss if derivatives do not perform as anticipated, if they are not correlated with the performance of other investments which
they are used to hedge or if the fund is unable to liquidate a position because of an illiquid secondary market. The market for
many derivatives is, or can suddenly become, illiquid. Changes in liquidity may result in significant, rapid and unpredictable
changes in the prices of derivatives. When used for speculative purposes, derivatives will produce enhanced investment exposure,
which will magnify gains and losses. Certain derivatives transactions may give rise to a form of leverage. The use of leverage
may cause a fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations. Leverage
may cause a fund to be more volatile than if it had not been leveraged. This is because leverage tends to exaggerate the effect
of any increase or decrease in the value of the fund’s portfolio securities. Further, using derivatives may include the
risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly, or at all, with
the value of the assets, reference rates or indexes they are designed to closely track. The Fund also will be subject to credit
risk with respect to the counterparties to the derivatives contracts purchased by the Fund. If a counterparty becomes bankrupt
or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience
significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding.
The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.
On
October 28, 2020, the Securities and Exchange Commission (“SEC”) adopted Rule 18f-4 under the 1940 Act relating to
a registered investment company’s use of derivatives and related instruments. Rule 18f-4 prescribes specific value-at-risk
leverage limits for certain derivatives users and requires certain derivatives users to adopt and implement a derivatives risk
management program (including the appointment of a derivatives risk manager and the implementation of certain testing requirements),
and prescribes reporting requirements in respect of derivatives. Subject to certain conditions, if a fund qualifies as a “limited
derivatives user,” as defined in Rule 18f-4, it is not subject to the full requirements of Rule 18f-4. In connection with
the adoption of Rule 18f-4, the SEC rescinded certain of its prior guidance regarding asset segregation and coverage requirements
in respect of derivatives transactions and related instruments. With respect to reverse repurchase agreements or other similar
financing transactions in particular, Rule 18f-4 permits a fund to enter into such transactions if the fund either (i) complies
with the asset coverage requirements of Section 18 of the 1940 Act, and combines the aggregate amount of indebtedness associated
with all similar financing with the aggregate amount of any other senior securities representing indebtedness when calculating
the relevant asset coverage ratio, or (ii) treats all similar financing transactions as derivatives transactions for all purposes
under Rule 18f-4. The Fund was required to comply with Rule 18f-4 beginning August 19, 2022 and has adopted procedures for investing
in derivatives and other transactions in compliance with Rule 18f-4. Disclosure regarding Rule 18f-4 under the 1940 Act has been
added since the prior disclosure date.
|
Defaulted And Distressed Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Defaulted
and Distressed Securities Risks
The
Underlying Funds may invest directly in defaulted and distressed securities. Legal difficulties and negotiations with creditors
and other claimants are common when dealing with defaulted or distressed companies. Defaulted or distressed companies may be insolvent
or in bankruptcy. In the event of a default, an Underlying Fund may incur additional expenses to seek recovery. The repayment
of defaulted bonds is subject to significant uncertainties, and in some cases, there may be no recovery of repayment. Defaulted
bonds might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest
or other payments. Because of the relative illiquidity of defaulted or distressed debt and equity securities, short sales are
difficult, and most Underlying Funds primarily maintain long positions. Some relative value trades are possible, where an investor
sells short one class of a defaulted or distressed company’s capital structure and purchases another. With distressed investing,
often there is a time lag between when an Underlying Fund makes an investment and when the Underlying Fund realizes the value
of the investment. In addition, an Underlying Fund may incur legal and other monitoring costs in protecting the value of the Underlying
Fund’s claims.
|
Equity Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities Risks
While
equity securities have historically generated higher average returns than fixed income securities, equity securities have also
experienced significantly more volatility in those returns. An adverse event, such as an unfavorable earnings report, may depress
the value of an issuer’s equity securities held by an Underlying Fund. Equity security prices fluctuate for several reasons,
including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant
stock market, or when political or economic events affecting the issuers occur. The value of a particular equity security may
fall in value. The prices of stocks change in response to many factors, including the historical and prospective earnings of the
issuer, the value of its assets, management decisions, decreased demand for an issuer’s products or services, increased
production costs, general economic conditions, interest rates, currency exchange rates, investor perceptions and market liquidity.
The value of an Underlying Fund’s shares will go up and down due to movement in the collective returns of the individual
securities held by the Underlying Fund. Common stocks are subordinate to preferred stocks and debt in a company’s capital
structure, and if a company is liquidated, the claims of secured and unsecured creditors and owners of preferred stocks take precedence
over the claims of those who own Common Shares. In addition, equity security prices may be particularly sensitive to rising interest
rates, as the cost of capital rises and borrowing costs increase.
|
Exchange Traded Note Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Exchange-Traded
Note Risks
The
Fund and the Underlying Funds may invest in exchange-traded notes (“ETNs”), which are notes representing unsecured
debt issued by an underwriting bank. ETNs are typically linked to the performance of an index plus a specified rate of interest
that could be earned on cash collateral. The value of an ETN may be influenced by time to maturity, level of supply and demand
for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, changes in the
issuer’s credit rating and economic, legal, political or geographic events that affect the referenced index. ETNs typically
mature 30 years from the date of issue. The issuer’s credit rating will be investment grade at the time of investment, however,
the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect
for any given time period. If a rating agency lowers the issuer’s credit rating, the value of the ETN will decline and a
lower credit rating reflects a greater risk that the issuer will default on its obligation. When a fund invests in ETNs, it will
bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount
of return on investment at maturity or upon redemption.
There
may be restrictions on a fund’s right to liquidate its investment in an ETN prior to maturity (for example, a fund may only
be able to offer its ETN for repurchase by the issuer on a weekly basis), since ETNs are meant to be held until maturity. A fund’s
decision to sell its ETN holdings may be limited by the availability of a secondary market.
|
Fixed Income Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Income Securities Risks
The
Underlying Funds and the Fund may invest in fixed income securities. Fixed income securities increase or decrease in value based
on changes in interest rates. If rates increase, the value of an Underlying Fund’s fixed income securities generally declines.
On the other hand, if rates fall, the value of the fixed income securities generally increases. The issuer of a fixed income security
may not be able to make interest and principal payments when due. This risk is increased in the case of issuers of high yield
securities, also known as “junk bonds.” If a U.S. Government agency or instrumentality in which an Underlying Fund
invests defaults, and the U.S. Government does not stand behind the obligation, the Underlying Fund’s share price or yield
could fall. Securities of certain U.S. Government sponsored entities are neither issued nor guaranteed by the U.S. Government.
The Underlying Funds may invest in fixed income securities of any credit quality, maturity or duration. Fixed income securities
risks include components of the following additional risks:
|
Credit Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Risk. The issuer of a fixed income security may not be able to make interest and principal payments when due. Generally, the
lower the credit rating of a security, the greater the risk that the issuer will default on its obligation, which could result
in a loss to a fund. The Underlying Funds may invest in securities that are rated in the lowest investment grade category. Issuers
of these securities are more vulnerable to changes in economic conditions than issuers of higher grade securities.
|
High Yield Securities Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
High
Yield Securities Risk. The Underlying Funds may invest in high yield securities, also known as “junk bonds.” High
yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. High yield securities
are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal in accordance with
the terms of the obligation. The market for high yield securities is generally less active than the market for higher quality
securities. This may limit the ability of a fund to sell high yield securities at the price at which it is being valued for purposes
of calculating NAV.
|
U S Government Securities Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Government Securities Risk. The Underlying Funds may invest in U.S. Government securities. The U.S. Government’s guarantee
of ultimate payment of principal and timely payment of interest on certain U.S. Government securities owned by an Underlying Fund
does not imply that the Underlying Fund’s shares are guaranteed or that the price of the Underlying Fund’s shares
will not fluctuate. In addition, securities issued by Freddie Mac, Fannie Mae and Federal Home Loan Banks are not obligations
of, or insured by, the U.S. Government. If a U.S. Government agency or instrumentality in which an Underlying Fund invests defaults
and the U.S. Government does not stand behind the obligation, the Fund’s NAV could fall.
|
Interest Rate Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Rate Risk. An Underlying Fund’s NAV and total return will vary in response to changes in interest rates. If rates increase,
the value of an Underlying Fund’s investments generally will decline, as will the Underlying Fund’s NAV. In typical
interest rate environments, the prices of longer-term fixed income securities generally fluctuate more than the prices of shorter-term
fixed income securities as interest rates change.
Interest
rates in the United States and many other countries have risen in recent periods and may continue to rise in the future. Additionally,
as a result of increasing interest rates, reserves held by banks and other financial institutions in bonds and other debt securities
could face a significant decline in value relative to deposits and liabilities, which coupled with general economic headwinds
resulting from a changing interest rate environment, creates liquidity pressures at such institutions, as evidenced by the bank
run on the Silicon Valley Bank Financial Group (“SVB”) causing it to be placed into receivership. As a result, certain
sectors of the credit markets could experience significant declines in liquidity, and it is possible that the Fund (or an Underlying
Fund) will not be able to manage this risk effectively. It is yet to be determined how the bank run on SVB will fully impact the
overall performance of the Fund or an Underlying Fund and how similar events may affect the ability of the Fund or an Underlying
Fund to execute its investment strategy.
|
Sovereign Obligation Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Sovereign
Obligation Risk. The Underlying Funds may invest in sovereign (i.e., foreign government) debt obligations. Investment in sovereign
debt obligations involves special risks not present in corporate debt obligations. The issuer of the sovereign debt or the governmental
authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the
Underlying Funds may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices
of sovereign debt may be more volatile than prices of U.S. debt obligations. In the past, certain emerging markets have encountered
difficulties in servicing their debt obligations, withheld payments of principal and interest, and declared moratoria on the payment
of principal and interest on their sovereign debts. See also “Foreign Investing Risks” below.
|
Foreign Investing Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Investing Risks
The
Fund and the Underlying Funds may invest in foreign securities. Investments in foreign securities may be affected by currency
controls and exchange rates; different accounting, auditing, financial reporting, and legal standards and practices; expropriation;
changes in tax policy; social, political and economic instability; greater market volatility; differing securities market structures;
higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions
or in receiving payment of dividends. In addition, changes in government administrations or economic or monetary policies in the
United States or abroad could result in appreciation or depreciation of the Fund’s or Underlying Fund’s securities.
These risks may be heightened in connection with investments in emerging or developing countries. To the extent that a Fund or
Underlying Fund invests in depositary receipts, the Fund or Underlying Fund will be subject to many of the same risks as when
investing directly in foreign securities. The effect of recent, worldwide economic instability on specific foreign markets or
issuers may be difficult to predict or evaluate, and some national economies continue to show profound instability, which may
in turn affect their international trading partners.
|
Illiquid Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid
Securities Risks
The
Underlying Funds may invest in illiquid securities. It may not be possible to sell or otherwise dispose of illiquid securities
both at the price and within the time period deemed desirable by a fund. Illiquid securities also may be difficult to value.
|
Initial Public Offerings Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Initial
Public Offerings Risks
The
Fund and the Underlying Funds may purchase securities in initial public offerings (“IPOs”). Because securities sold
in an IPO frequently are volatile in price, the Fund or an Underlying Fund may hold IPO shares for a very short period of time.
This may increase the turnover of a fund’s portfolio and may lead to increased expenses to the fund, such as commissions
and transaction costs. By selling shares, a fund may realize taxable capital gains that it will subsequently distribute to shareholders.
Investing in IPOs has added risks because the shares are frequently volatile in price. As a result, their performance can be more
volatile and they face greater risk of business failure, which could increase the volatility of a fund’s portfolio.
The
Fund’s IPO investments may be in IPOs of Underlying Funds. There is a significant risk that the shares of closed-end funds
purchased in an IPO will trade at a price below their IPO price.
|
Investment And Market Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Investment
and Market Risks
An
investment in Common Shares is subject to investment risk, including the possible loss of the entire principal amount invested.
An investment in Common Shares represents an indirect investment in the Underlying Funds owned by the Fund. The value of the Underlying
Funds, like other market investments, may move up or down, sometimes rapidly and unpredictably. Overall stock market risks may
also affect the NAV of the Fund or the Underlying Funds. Factors such as domestic and foreign economic growth and market conditions,
interest rate levels and political events affect the securities markets. The Common Shares at any point in time may be worth less
than the original investment, even after taking into account any reinvestment of dividends and distributions.
|
Legislation Policy And Regulatory Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Legislation,
Policy and Regulatory Risks
At
any time after the date of this annual report, legislation or additional regulations may be enacted that could negatively affect
the assets of the Fund or the issuers of such assets. Recent changes in the U.S. political landscape and changing approaches to
regulation may have a negative impact on the entities and/or securities in which the Fund or an Underlying Fund invests. Legislation
or regulation may also change the way in which the Fund or an Underlying Fund is regulated. New or amended regulations may be
imposed by the Commodity Futures Trading Commission (“CFTC”), the SEC, the Board of Governors of the Federal Reserve
System or other financial regulators, other governmental
regulatory authorities or self-regulatory organizations that supervise the financial markets that could adversely affect the Fund
or the Underlying Funds. In particular, these agencies are empowered to promulgate a variety of new rules pursuant to financial
reform legislation in the United States. There can be no assurance that future legislation, regulation or deregulation will not
have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objective. The
Fund and the Underlying Funds also may be adversely affected by changes in the enforcement or interpretation of existing statutes
and rules by these governmental regulatory authorities or self regulatory organizations.
|
L I B O R Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR
Risk
Certain
of the Fund's or Underlying Funds’ investments, payment obligations and financing terms may be based on floating rates,
such as LIBOR, Euro Interbank Offered Rate and other similar types of reference rates. In July of 2017, the head of the United
Kingdom Financial Conduct Authority (“FCA”) announced a desire to phase out the use of LIBOR at the end of 2021. Most
LIBOR settings are no longer published as of December 31, 2021. Overnight and 12-month U.S. dollar LIBOR settings permanently
ceased after publication on June 30, 2021. 1-, 3-and 6-month U.S. dollar LIBOR settings will continue to be published using a
synthetic methodology until September 2024. Neither the effect of the LIBOR transition process nor its ultimate success can yet
be known. Although the transition away from LIBOR has become increasingly well-defined, any potential effects of the transition
away from LIBOR and other benchmark rates on financial markets, a fund or the financial instruments in which a fund invests can
be difficult to ascertain. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains
uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments.
Global regulators have advised market participants to cease entering into new contracts using LIBOR as a reference rate, and it
is possible that investments in LIBOR-based instruments could invite regulatory scrutiny. In addition, a liquid market for newly-issued
instruments that use a reference rate other than LIBOR still may be developing. All of the aforementioned may adversely affect
the Fund’s or an Underlying Fund’s performance or NAV.
|
Management Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Management
Risks
The
Adviser’s judgments about the attractiveness, value and potential appreciation of a particular asset class or individual
security in which the Fund invests may prove to be incorrect and there is no guarantee that the Adviser’s judgment will
produce the desired results. Similarly, the Fund’s investments in Underlying Funds are subject to the judgment of the Underlying
Funds’ managers which may prove to be incorrect. In addition, the Adviser will have limited information as to the portfolio
holdings of the Underlying Funds at any given time. This may result in the Adviser having less ability to respond to changing
market conditions. The Fund may allocate its assets so as to under-emphasize or over-emphasize ETFs or other investments under
the wrong market conditions, in which case the Fund’s NAV may be adversely affected.
|
Market Disruption And Geopolitical Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Market
Disruption and Geopolitical Risks
The
value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic
and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies
or governments. These movements, sometimes called volatility, may be greater or less depending on the types of securities the
Fund owns and the markets in which the securities trade. The increasing interconnectivity between global economies and financial
markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a
different country, region or financial market. Securities in the Fund’s portfolio may underperform due to inflation (or
expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, pandemics,
epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar
to those in recent years, such as terrorist attacks around the world, natural disasters, social and political discord or debt
crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global
financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events
affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects.
Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund’s portfolio,
as well as its ability to sell securities to meet redemptions. There is a risk that you may lose money by investing in the Fund.
Social,
political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics),
terrorism, conflicts and social unrest, may occur and could significantly impact issuers, industries, governments and other systems,
including the financial markets. As global systems, economies and financial markets are increasingly interconnected, events that
once had only local impact are now more likely to have regional or even global effects. Events that occur in one country, region
or financial market will, more frequently, adversely impact issuers in other countries, regions or markets. These impacts can
be exacerbated by failures of governments and societies to adequately respond to an emerging event or threat. These types of events
quickly and significantly impact markets in the U.S. and across the globe leading to extreme market volatility and disruption.
The extent and nature of the impact on supply chains or economies and markets from these events is unknown, particularly if a
health emergency or other similar event persists for an extended period of time. Social, political, economic and other conditions
and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts and social unrest,
could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and generally
have a significant impact on the economies and financial markets and the Adviser’s investment advisory activities and services
of other service providers, which in turn could adversely affect the Fund’s investments and other operations. The value
of the Fund’s investment may decrease as a result of such events, particularly if these events adversely impact the operations
and effectiveness of the Adviser or key service providers or if these events disrupt systems and processes necessary or beneficial
to the investment advisory or other activities on behalf the Fund.
In
early 2020, an outbreak of a novel strain of coronavirus (COVID-19) emerged globally. The outbreak of COVID-19 and its variants
resulted in closing international borders, enhanced health screenings, healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general public concern and uncertainty. This outbreak
negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual
companies and the market in general in significant and unforeseen ways. On May 5, 2023, the World Health Organization declared
the end of the global emergency status for COVID-19. The United States subsequently ended the federal COVID-19 public health emergency
declaration effective May 11, 2023. Although vaccines for COVID-19 are widely available, it is unknown how long certain circumstances
related to the pandemic will persist, whether they will reoccur in the future and what additional implications may follow from
the pandemic. The impact of these events and other epidemics or pandemics in the future could adversely affect Fund performance.
In
February 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries and the threat
of wider-spread hostilities could have a severe adverse effect on the region and global economies, including significant negative
impacts on the markets for certain securities and commodities, such as oil and natural gas. In addition, sanctions imposed on
Russia by the United States and other countries, and any sanctions imposed in the future, could have a significant adverse impact
on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict
and related events. How long the armed conflict and related events will last cannot be predicted. These tensions and any related
events could have a significant impact on Fund performance and the value of Fund investments.
Disclosures
related to the COVID-19 pandemic and Russian military attack on Ukraine have been updated since the prior disclosure date.
|
Master Limited Partnerships Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Master
Limited Partnerships Risks
The
Underlying Funds may invest in MLPs. Investments in publicly traded MLPs, which are limited partnerships or limited liability
companies taxable as partnerships, involve some risks that differ from an investment in the common stock of a corporation, including
risks related to limited control and limited rights to vote on matters affecting MLPs, risks related to potential conflicts of
interest between an MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general
partner’s right to require unit-holders to sell their common units at an undesirable time or price. MLPs may derive income
and gains from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting
gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs generally have two classes of owners,
the general partner and limited partners. When investing in an MLP, an Underlying Fund generally purchases publicly traded common
units issued to limited partners of the MLP. The general partner is typically owned by a major energy company, an investment fund,
the direct management of the MLP or is an entity owned by one or more of such parties. The general partner may be structured as
a private or publicly traded corporation or other entity. The general partner typically controls the operations and management
of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s
operations and management. As compared to common stockholders of a corporation, holders of MLP common units have more limited
control and limited rights to vote on matters affecting the partnership.
MLPs
are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions
up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner
interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests
have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages.
Distributable cash in excess of the MQD paid to both common and subordinated units is distributed to both common and subordinated
units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner
operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the
general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage
of the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where it receives
50% of every incremental dollar paid to common and subordinated unit holders. These incentive distributions encourage the general
partner to streamline costs, increase capital expenditures and acquire assets in order to increase the partnership’s cash
flow and raise the quarterly cash distribution in order to reach higher tiers. Such results benefit all security holders of the
MLP.
MLP
common units represent a limited partnership interest in the MLP. MLP common units are listed and traded on U.S. securities exchanges,
with their value fluctuating predominantly based on prevailing market conditions and the success of the MLP. An Underlying Fund
may purchase MLP common units in market transactions. Unlike owners of common stock of a corporation, owners of MLP common units
have limited voting rights and have no ability to elect directors. In the event of liquidation, MLP common units have preference
over subordinated units, but not over debt or preferred units, to the remaining assets of the MLP.
MLPs
may be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. Certain
MLP securities may trade in lower volumes due to their smaller capitalizations. Accordingly, those MLPs may be subject to more
abrupt or erratic price movements and may lack sufficient market liquidity to enable an Underlying Fund to effect sales at an
advantageous time or without a substantial drop in price. As a result, these investments may be difficult to dispose of at a fair
price at the times when an Underlying Fund believes it is desirable to do so. MLPs are generally considered interest-rate sensitive
investments. During periods of interest rate volatility, these investments may not provide attractive returns, which may adversely
impact the overall performance of the Fund or an Underlying Fund.
MLPs
are subject to various risks related to the underlying operating companies they control, including dependence upon specialized
management skills and the risk that those operating companies may lack or have limited operating histories. The success an Underlying
Fund’s investments in an MLP will vary depending on the underlying industry represented by the MLP’s portfolio. Certain
MLPs in which an Underlying Fund may invest depend upon their parent or sponsor entities for the majority of their revenues.
Certain
MLPs in which an Underlying Fund may invest depend upon a limited number of customers for substantially all of their revenue.
Similarly, certain MLPs in which an Underlying Fund may invest depend upon a limited number of suppliers of goods or services
to continue their operations. The loss of those customers or suppliers could have a material adverse effect on an MLP’s
results of operations and cash flow, and on its ability to make distributions to unit holders such as an Underlying Fund.
The
benefit an Underlying Fund will derive from its investment in MLPs will be largely dependent on the MLPs being treated as partnerships
and not as corporations for federal income tax purposes. As a partnership, an MLP generally has no tax liability at the entity
level. If, as a result of a change in current law or a change in an MLP’s business, an MLP were treated as a corporation
for federal income tax purposes, such MLP would be obligated to pay federal income tax on its income at the corporate tax rate.
If an MLP were classified as a corporation for federal income tax purposes, the amount of cash available for distribution by the
MLP would be reduced and distributions received by an Underlying Fund would be taxed under federal income tax laws applicable
to corporate dividends (as dividend income, return of capital, or capital gain). Therefore, treatment of an MLP as a corporation
for federal income tax purposes would result in a reduction in the after-tax return to an Underlying Fund, likely causing a reduction
in the value of the Common Shares.
|
Micro Small And Medium Sized Company Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Micro-,
Small- and Medium-Sized Company Risks
The
Underlying Funds may invest in securities without regard to market capitalization. Investments in securities of micro-, small-and
medium-sized companies may be subject to more abrupt or erratic market movements than larger, more established companies, because
these securities typically are traded in lower volume and issuers are typically more subject to changes in earnings and future
earnings prospects. Small- and medium-sized companies often have narrower markets for their goods and/or services and more limited
managerial and financial resources than larger, more established companies. Furthermore, these companies often have limited product
lines, services, markets or financial resources, or are dependent on a small management group. Since these stocks are not well-known
to the investing public, do not have significant institutional ownership and are followed by relatively few security analysts,
there will normally be less publicly available information concerning these securities compared to what is available for the securities
of larger companies. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, can decrease the
value and liquidity of securities held by the Fund. As a result, small- and medium-sized companies’ performance can be more
volatile and the companies face greater risk of business failure, which could increase the volatility of the Fund’s portfolio.
The risks are intensified for investments in micro-cap companies.
|
Options And Futures Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Options
and Futures Risks
The
Fund and the Underlying Funds may invest in options and futures contracts. The use of futures and options transactions entails
certain special risks. In particular, the variable degree of correlation between price movements of futures contracts and price
movements in the related securities position of the Fund or an Underlying Fund could create the possibility that losses on the
hedging instrument are greater than gains in the value of the Fund’s or Underlying Fund’s position. In addition, futures
and options markets could be illiquid in some circumstances and certain over-the-counter options could have no markets. As a
result, in certain markets, the Fund or an Underlying Fund might not be able to close out a transaction without incurring substantial
losses. Although the Fund’s or an Underlying Fund’s use of futures and options transactions for hedging should tend
to minimize the risk of loss due to a decline in the value of the hedged position, at the same time it will tend to limit any
potential gain to the Fund or an Underlying Fund that might result from an increase in value of the position. There is also the
risk of loss by the Fund or an Underlying Fund of margin deposits in the event of bankruptcy of a broker with whom the Fund or
Underlying Fund has an open position in a futures contract or option thereon. Finally, the daily variation margin requirements
for futures contracts create a greater ongoing potential financial risk than would purchases of options, in which case the exposure
is limited to the cost of the initial premium. However, because option premiums paid by the Fund or an Underlying Fund are small
in relation to the market value of the investments underlying the options, buying options can result in large amounts of leverage.
This leverage offered by trading in options could cause the Fund’s or an Underlying Fund’s NAV to be subject to more
frequent and wider fluctuation than would be the case if the Fund or Underlying Fund did not invest in options.
Options
transactions may be effected on securities exchanges or in the over-the-counter market. When options are purchased over-the-counter,
the Fund or an Underlying Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform
its obligations under the option contract. The counterparties to these transactions typically will be major international banks,
broker-dealers and financial institutions. Such options may also be illiquid, and in such cases, the Fund or an Underlying Fund
may have difficulty closing out its position. Banks, broker- dealers or other financial institutions participating in such transactions
may fail to settle a transaction in accordance with the terms of the option as written. In the event of default or insolvency
of the counterparty, the Fund or an Underlying Fund may be unable to liquidate an over-the-counter option position.
The
Fund may purchase put options. An Underlying Fund may purchase and sell call and put options with respect to specific securities,
and may write and sell covered or uncovered call and put options. A call option gives the purchaser of the call option, in return
for a premium paid, the right to buy the security underlying the option from the writer of the call option at a specified exercise
price within a specified time frame. A put option gives the purchaser of the put option, in return for a premium paid, the right
to sell the underlying security to the writer of the put option at a specified price within a specified time frame. A covered
call option is a call option with respect to an underlying security that a fund owns. A covered put option is a put option with
respect to which a fund has segregated cash or liquid securities to fulfill the obligation of the option. The purchaser of a put
or call option runs the risk of losing the purchaser’s entire investment, paid as the premium, in a relatively short period
of time if the option is not sold at a gain or cannot be exercised at a gain prior to expiration. In selling put options, there
is a risk that the Underlying Fund may be required to buy the underlying security at a disadvantageous price above the market
price. The un-covered writer of a call option is subject to a risk of loss if the price of the underlying security should increase,
and the un-covered writer of a put option is subject to a risk of loss if the price of the underlying security should decrease.
The
Fund may invest a significant portion of its total assets in Underlying Funds that write covered call options. To the extent that
an Underlying Fund writes a covered call option, it forgoes, during the option’s life, the opportunity to profit from increases
in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but
has retained the risk of loss should the price of the underlying security decline. As the writer of the option, the Underlying
Fund bears the market risk of an unfavorable change in the price of the security underlying a written option. As an Underlying
Fund writes covered calls over more of its portfolio, its ability to benefit from capital appreciation becomes more limited and
the risk of NAV erosion increases. To the extent an Underlying Fund experiences NAV erosion (which itself may have an indirect
negative effect on the market price of interests in the Underlying Fund), the Underlying Fund will have a reduced asset base over
which to write covered calls, which may eventually lead to reduced distributions to shareholders such as the Fund. The writer
of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once an
option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation
under the option and must deliver the underlying security at the exercise price.
To
the extent that an Underlying Fund engages in selling options that trade in over-the-counter markets, the Underlying Fund may
be subject to additional risks. Participants in these markets are typically not subject to the same credit evaluation and regulatory
oversight as members of “exchange based” markets. By engaging in option transactions in these markets, an Underlying
Fund may take credit risk with regard to parties with which it trades and also may bear the risk of settlement default. These
risks may differ materially from those involved in exchange-traded transactions, which generally are characterized by clearing
organization guarantees, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable
to intermediaries. Transactions entered into directly between two counterparties generally do not benefit from these protections,
which may subject an Underlying Fund to the risk that a counterparty will not settle a transaction in accordance with agreed terms
and conditions because of a dispute over the terms of the contract or because of a credit or liquidity problem. Such “counterparty
risk” is increased for contracts with longer maturities when events may intervene to prevent settlement.
The
Fund or an Underlying Fund may enter into futures contracts in U.S. domestic markets or on exchanges located outside of the United
States. Foreign markets may offer advantages, including trading opportunities or arbitrage possibilities, not available in the
United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges
are principal markets, so that no common clearing facility exists and an investor may look only to the broker or counterparty
for the performance of the contract. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is
not regulated by the Commodity Futures Trading Commission.
There
can be no assurance that a liquid market will exist for any particular futures contract at any particular time. Many futures exchanges
and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the
daily limit has been reached in a particular contract, no trades may be made that day of a price beyond that limit or trading
may be suspended for specified periods during the trading day.
The
Fund or an Underlying Fund may purchase and sell single stock futures, stock index futures contracts, interest rate futures contracts,
currency futures and other commodity futures. A stock index future obligates a fund to pay or receive an amount of cash based
upon the value of a stock index at a specified date in the future. An interest rate futures contract obligates a fund to purchase
or sell an amount of a specific debt security at a future date at a specified price. A currency futures contract obligates a fund
to purchase or sell an amount of a specific currency at a future date at a future price.
If
the Fund or an Underlying Fund purchases an option and the price of the underlying stock fails to move in the expected direction,
the Fund or Underlying Fund will lose most or all of the amount the fund paid for the option, plus commission costs. If an Underlying
Fund writes (“sells”) an option and the price of the underlying stock fails to move in the expected direction, the
Underlying Fund’s losses could easily exceed the proceeds it received when it wrote the options.
|
Private Debt Risk [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Private
Debt Risk
The
Fund may invest in debt issued by non-listed funds and BDCs (“Private Debt”). Private Debt often may be illiquid and
is typically not listed on an exchange and traded less actively than similar securities issued by publicly traded-vehicles. For
certain Private Debt investments, trading may only be possible through the assistance of the broker who originally brought the
security to the market and has a relationship with the issuer. Due to the limited trading market, independent pricing services
may be unable to provide a price for Private Debt, and as such the fair value of the securities may be determined in good faith
under procedures approved by the Board, which typically will include the use of one or more independent broker quotes.
|
Real Estate Investment Trust Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Real
Estate Investment Trust (“REIT”) Risks
The
Underlying Funds may invest in equity and mortgage REITs. Equity REITs invest in real estate, and mortgage REITs invest in loans
secured by real estate. Investing in REITs involves certain unique risks in addition to those risks associated with investing
in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned
by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management
skills, are not diversified, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. REITs also
are subject to the possibilities of failing to qualify for tax free pass-through of income under the Internal Revenue Code of
1986, as amended (the “Code”), and failing to maintain their exemption from registration under the 1940 Act. Investment
in REITs involves risks similar to those associated with investing in small capitalization companies, and REITs (especially mortgage
REITs) are subject to interest rate risks. When interest rates decline, the value of a REIT’s investment in fixed rate obligations
can be expected to rise. Conversely, when interest rates rise, the value of a REIT’s investment in fixed rate obligations
can be expected to decline. By investing in REITs directly or indirectly through the Underlying Funds, the Fund will indirectly
bear its proportionate share of the expenses of the REITs. The expenses at the REIT level are not included in the Fund’s
expense table as acquired fund fees and expenses.
|
Securities Lending Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Securities
Lending Risks
The
Underlying Funds may engage in securities lending. Securities lending involves counterparty risk, including the risk that the
loaned securities may not be returned in a timely manner and/or a loss of rights in the collateral if the borrower or the lending
agent defaults. This risk is increased when an Underlying Fund’s loans are concentrated with a single or limited number
of borrowers. In addition, an Underlying Fund bears the risk of loss in connection with the investments of the cash collateral
it receives from the borrower. To the extent that the value or return of an Underlying Fund’s investments of the cash collateral
declines below the amount owed to a borrower, the Underlying Fund may incur losses that exceed the amount it earned in lending
the security.
|
Securities Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Securities
Risks
The
value of the Fund or an Underlying Fund may decrease in response to the activities and financial prospects of individual securities
in the Fund’s portfolio.
|
Senior Loan Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Senior
Loan Risks
The
Underlying Funds may invest in senior secured floating rate and fixed-rate loans (“Senior Loans”). There is less readily
available and reliable information about most Senior Loans than is the case for many other types of instruments, including listed
securities. Senior Loans are not listed on any national securities exchange or automated quotation system and as such, many Senior
Loans are illiquid, meaning that an Underlying Fund may not be able to sell them quickly at a fair price. To the extent that a
secondary market does exist for certain Senior Loans, the market is more volatile than for liquid, listed securities and may be
subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. The market for Senior Loans
could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior Loans,
like most other debt obligations, are subject to the risk of default. Default in the payment of interest or principal on a Senior
Loan will result in a reduction of income to the Fund, a reduction in the value of the Senior Loan and a potential decrease in
the Fund’s NAV of the Common Shares.
The
Underlying Funds may acquire or hold Senior Loans of borrowers that are experiencing, or are more likely to experience, financial
difficulty, including Senior Loans issued to highly leveraged borrowers or borrowers that have filed for bankruptcy protection.
Borrowers may have outstanding debt obligations, including Senior Loans, that are rated below investment grade. An Underlying
Fund may invest a substantial portion of its assets in Senior Loans that are rated below investment grade or that are unrated
at the time of purchase but are deemed by the Underlying Fund’s adviser’s to be of comparable quality. The values
of Senior Loans of borrowers that have filed for bankruptcy protection or that are experiencing payment difficulty could be affected
by, among other things, the assessment of the likelihood that the lenders ultimately will receive repayment of the principal amount
of such Senior Loans, the likely duration, if any, of a lapse in the scheduled payment of interest and repayment of principal
and prevailing interest rates. There is no assurance that an Underlying Fund will be able to recover any amount on Senior Loans
of such borrowers or that sale of the collateral granted in connection with Senior Loans would raise enough cash to satisfy the
borrower’s payment obligation or that the collateral can or will be liquidated. In the event of bankruptcy, liquidation
may not occur and the bankruptcy court may not give lenders the full benefit of their senior position in the capital structure
of the borrower.
|
Short Sale Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Short
Sale Risks
The
Fund and Underlying Funds may sell securities short. Positions in shorted securities are speculative and more risky than long
positions (purchases) in securities because the maximum sustainable loss on a security purchased is limited to the amount paid
for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore,
in theory, securities sold short have unlimited risk. Short selling will also result in higher transaction costs (such as interest
and dividends), directly or indirectly through the investments in Underlying Funds, and may result in higher taxes, which reduce
the Fund’s return.
If
a security sold short increases in price, a fund may have to cover its short position at a higher price than the short sale price,
resulting in a loss. With respect to a fund’s short positions, the Fund must borrow those securities to make delivery to
the buyer. A fund may not be able to borrow a security that it needs to deliver or it may not be able to close out a short position
at an acceptable price and may have to sell related long positions before it had intended to do so. As a result, a fund may not
be able to successfully implement its short sale strategy due to the limited availability of desired securities or for other reasons.
When
borrowing a security for delivery to a buyer, a fund also may be required to pay a premium and other transaction costs, which
would increase the cost of the security sold short. A fund must normally repay to the lender an amount equal to any dividends
or interest earned while the loan is outstanding. The amount of any gain will be decreased, and the amount of any loss increased,
by the amount of the premium, dividends, interest or expenses a fund may be required to pay in connection with the short sale.
Also, the lender of a security may terminate the loan at a time when a fund is unable to borrow the same security for delivery.
In that case, a fund would need to purchase a replacement security at the then current market price or “buy in” by
paying the lender an amount equal to the costs of purchasing the security.
Until
a fund replaces a borrowed security, it is required to maintain a segregated account of cash or liquid assets to cover the fund’s
short position. Securities held in a segregated account cannot be sold while the position they are covering is outstanding, unless
they are replaced with similar securities. Additionally, a fund must maintain sufficient liquid assets (less any additional collateral
held by the broker), marked-to-market daily, to cover its short sale obligations. This may limit a fund’s investment flexibility,
as well as its ability to meet redemption requests or other current obligations.
In
addition, until a fund replaces a borrowed instrument, a fund may also be required to maintain short sale proceeds with the lending
broker as collateral. Moreover, a fund will be required to make margin payments to the lender during the term of the borrowing
if the value of the security it borrowed (and sold short) increases. Thus, short sales involve credit exposure to the broker that
executes the short sales. In the event of the bankruptcy or other similar insolvency with respect to a broker with whom a fund
has an open short position, a fund may be unable to recover, or be delayed in recovering, any margin or other collateral held
with or for the lending broker.
Because
a fund’s loss on a short sale arises from increases in the value of the security sold short, the loss is theoretically unlimited.
In certain cases, purchasing a security to cover a short position can itself cause the price of the security to rise further,
which would exacerbate the loss. Conversely, gains on short sales, after transaction and related costs, are generally the difference
between the price at which a fund sold the borrowed security and the price it paid to purchase the security for delivery to the
buyer. By contrast, a fund’s loss on a long position arises from decreases in the value of the security and is limited by
the fact that a security’s value cannot drop below zero.
By
investing the proceeds received from selling securities short, the Fund is using a form of leverage, which creates special risks.
The use of leverage may increase the Fund’s exposure to long equity positions and make any change in the Fund’s NAV
greater than it would be without the use of leverage. This could result in increased volatility of returns. There is no guarantee
that the Fund will leverage its portfolio, or if it does, that the Fund’s leveraging strategy will be successful. The Fund
also cannot guarantee that the use of leverage will produce a higher return on an investment.
|
S O F R Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
SOFR
Risk
SOFR
is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S. Treasury
securities. SOFR is calculated based on transaction-level repodata collected from various sources. For each trading day, SOFR
is calculated as a volume-weighted median rate derived from such data. SOFR is calculated and published by the Federal Reserve
Bank of New York (“FRBNY”). If data from a given source required by the FRBNY to calculate SOFR is unavailable for
any day, then the most recently available data for that segment will be used, with certain adjustments. If errors are discovered
in the transaction data or the calculations underlying SOFR after its initial publication on a given day, SOFR may be republished
at a later time that day. Rate revisions will be effected only on the day of initial publication and will be republished only
if the change in the rate exceeds one basis point.
Because
SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR was intended
to be an unsecured rate that represents interbank funding costs for different short-term maturities or tenors. It was a forward-looking
rate reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR was intended to be sensitive, in certain
respects, to bank credit risk and to term interest rate risk. In contrast, SOFR is a secured overnight rate reflecting the credit
of U.S. Treasury securities as collateral. Thus, it is largely insensitive to credit-risk considerations and to short-term interest
rate risks. SOFR is a transaction-based rate, and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR,
will perform in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates
will be a suitable substitute for LIBOR. SOFR has a limited history, having been first published in April 2018. The future performance
of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s history or otherwise. Levels of SOFR in the
future, including following the discontinuation of LIBOR, may bear little or no relation to historical levels of SOFR, LIBOR or
other rates. The inclusion of SOFR Risk is a change since the prior disclosure date.
|
Special Purpose Acquisition Companies Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Special
Purpose Acquisition Companies Risks
The
Fund may invest in SPACs. SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities.
Unless and until an acquisition is completed, a SPAC generally invests its assets (less an amount to cover expenses) in U.S. government
securities, money market fund securities and cash. SPACs and similar entities may be blank check companies with no operating history
or ongoing business other than to seek a potential acquisition. Accordingly, the value of their securities is particularly dependent
on the ability of the entity’s management to identify and complete a profitable acquisition. Certain SPACs may seek acquisitions
only in limited industries or regions, which may increase the volatility of their prices. If an acquisition that meets the requirements
for the SPAC is not completed within a predetermined period of time, the invested funds are returned to the entity’s shareholders.
Investments in SPACs may be illiquid and/or be subject to restrictions on resale. To the extent the SPAC is invested in cash or
similar securities, this may impact the Fund’s ability to meet its investment objective.
The
officers and directors of a SPAC may operate multiple SPACs and could have conflicts of interest in determining to which SPAC
a particular business opportunity should be presented. In such circumstances, there can be no assurance that a given business
opportunity would be presented to the SPAC in which the Fund holds an investment.
|
Structured Notes Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Structured
Notes Risks
The
Underlying Funds may invest in structured notes. Structured notes are subject to a number of fixed income risks including general
market risk, interest rate risk, and the risk that the issuer on the note may fail to make interest and/or principal payments
when due, or may default on its obligations entirely. In addition, because the performance of structured notes tracks the performance
of the underlying debt obligation, structured notes generally are subject to more risk than investing in a simple note or bond
issued by the same issuer. It is impossible to predict whether the referenced factor (such as an index or interest rate) or prices
of the underlying securities will rise or fall. To the extent that an Underlying Fund invests in structured notes, the Underlying
Fund may be more volatile than other funds that do not invest in structured notes. The actual trading prices of structured notes
may be significantly different from the principal amount of the notes. If an Underlying Fund sells the structured notes prior
to maturity, it may suffer a loss of principal. At final maturity, structured notes may be redeemed in cash or in kind, which
is at the discretion of the issuer. If the notes are redeemed in kind, a fund would receive shares of stock at a depressed price.
To the extent that a structured note is not principal-protected through an insurance feature, the note’s principal will
not be protected. In the case of a decrease in the value of the underlying asset, an Underlying Fund would receive shares at a
value less than the original amount invested; while an increase in the value of an underlying asset will not increase the return
on the note.
|
Swap Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Swap
Risks
The
Fund and the Underlying Funds may enter into interest rate, index, total return and currency swap agreements. Swap agreements
are two-party contracts under which the fund and a counterparty, such as a broker or dealer, agree to exchange the returns (or
differentials in rates of return) earned or realized on an agreed-upon underlying asset or investment over the term of the swap.
The use of swap transactions is a highly specialized activity which involves strategies and risks different from those associated
with ordinary portfolio security transactions. If the Adviser or an Underlying Fund’s investment adviser is incorrect in
its forecasts of default risks, market spreads, liquidity or other applicable factors or events, the investment performance of
the Fund or Underlying Fund would diminish compared with what it would have been if these techniques were not used. Swaps and
swap options can be used for a variety of purposes, including: to manage fund exposure to changes in interest or foreign currency
exchange rates and credit quality; as an efficient means of adjusting fund overall exposure to certain markets; in an effort to
enhance income or total return or protect the value of portfolio securities; to serve as a cash management tool; and to adjust
portfolio duration.
There
are risks in the use of swaps. Swaps could result in losses if interest or foreign currency exchange rates or credit quality changes
are not correctly anticipated. Total return swaps could result in losses if the reference index, security, or investments do not
perform as anticipated. Total return swaps involve an enhanced risk that the issuer or counterparty will fail to perform its contractual
obligations. Total return swaps may effectively add leverage to the Fund’s portfolio because the Fund would be subject to
investment exposure on the full notional amount of the swap. To the extent the Fund or an Underlying Fund enters into a total
return swap on equity securities, the Fund or the Underlying Fund will receive the positive performance of a notional amount of
such securities underlying the total return swap. In exchange, the Fund or the Underlying Fund will be obligated to pay the negative
performance of such notional amount of securities. Therefore, the Fund or the Underlying Fund assumes the risk of a substantial
decrease in the market value of the equity securities. The use of swaps may not always be successful; using them could lower fund
total return, their prices can be highly volatile, and the potential loss from the use of swaps can exceed the fund’s initial
investment in such instruments. Also, the other party to a swap agreement could default on its obligations or refuse to cash out
the fund’s investment at a reasonable price, which could turn an expected gain into a loss.
Currently,
certain categories of interest rate swaps are subject to mandatory clearing, and more are expected to be cleared in the future.
The counterparty risk for cleared derivatives is generally expected to be lower than for uncleared over-the-counter derivative
transactions as each party to a transaction looks only to the central clearing house for performance of obligations under the
transaction. However, there can be no assurance that a clearing house, or its members, will satisfy the clearing house’s
obligations to the fund or that the fund’s use of swaps will be advantageous.
|
Underlying Fund Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
Fund Risks
The
Fund will invest in Underlying Funds such as other closed-end funds and ETFs. The expenses of the Fund will generally be higher
than the direct expenses of other fund shares. The Fund will indirectly bear fees and expenses charged by the Underlying Funds
in which the Fund invests in addition to the Fund’s direct fees and expenses. The Fund may also incur brokerage costs when
it purchases shares of Underlying Funds. Furthermore, investments in Underlying Funds could affect the timing, amount and character
of distributions to Common Stockholders and therefore may increase the amount of taxes payable by investors in the Fund. The value
of your investment in the Fund will go up and down with the prices of Underlying Fund shares (and other securities) in which the
Fund invests. Similarly, the value of the Fund’s investments in Underlying Funds will go up and down with the prices of
the securities in which the Underlying Funds invest.
There
is also the risk that the Fund may suffer losses due to the investment practices or operations of the Underlying Funds. To the
extent that the Fund invests in one or more Underlying Funds that concentrate in a particular industry, the Fund would be vulnerable
to factors affecting that industry and the concentrating Underlying Funds’ performance, and that of the Fund, may be more
volatile than Underlying Funds that do not concentrate.
As
the Fund will invest at least 80% of its Managed Assets in Underlying Funds, the Fund’s performance will depend to a greater
extent on the overall performance of closed-end funds, ETFs, BDCs and SPACs generally, in addition to the performance of the specific
Underlying Funds (and other assets) in which the Fund invests. The use of leverage by Underlying Funds magnifies gains and losses
on amounts invested and increases the risks associated with investing in Underlying Funds. Further, the Underlying Funds are not
subject to the Fund’s investment policies and restrictions. The Fund generally receives information regarding the portfolio
holdings of Underlying Funds only when that information is made available to the public. The Fund cannot dictate how the Underlying
Funds invest their assets. The Underlying Funds may invest their assets in securities and other instruments, and may use investment
techniques and strategies, that are not described in this disclosure. Common Stockholders will bear two layers of fees and expenses
with respect to the Fund’s investments in Underlying Funds because each of the Fund and the Underlying Fund will charge
fees and incur separate expenses. In addition, subject to applicable 1940 Act limitations, the Underlying Funds themselves may
purchase securities issued by registered and unregistered funds (e.g., common stock, preferred stock, auction rate preferred stock),
and those investments would be subject to the risks associated with Underlying Funds and unregistered funds (including a third
layer of fees and expenses, i.e., the Underlying Fund will indirectly bear fees and expenses charged by the funds in which the
Underlying Fund invests, in addition to the Underlying Fund’s own fees and expenses). An Underlying Fund with positive performance
may indirectly receive a performance fee from the Fund, even when the Fund’s overall returns are negative. Additionally,
the Fund’s investment in an Underlying Fund may result in the Fund’s receipt of cash in excess of the Underlying Fund’s
earnings; if the Fund distributes these amounts, the distributions could constitute a return of capital to Fund shareholders for
federal income tax purposes. As a result of these factors, the use of the fund of funds structure by the Fund could therefore
affect the amount, timing and character of distributions to shareholders.
The
Fund may invest in shares of closed-end funds that are trading at a discount to NAV or at a premium to NAV and closed-end funds
may not be able to outperform their benchmarks. There can be no assurance that the market discount on shares of any closed-end
fund purchased by the Fund will ever decrease. In fact, it is possible that this market discount may increase and the Fund may
suffer realized or unrealized capital losses due to further decline in the market price of the securities of such closed-end funds,
thereby adversely affecting the Fund’s NAV. The Fund’s investment in the Common Shares of closed-end funds that are
financially leveraged may create an opportunity for greater total return on its investment, but at the same time may be expected
to exhibit more volatility in market price and NAV than an investment in shares of investment companies without a leveraged capital
structure.
The
Fund may invest in BDCs. BDCs generally invest in less mature U.S. private companies or thinly traded U.S. public companies which
involve greater risk than well-established publicly-traded companies. While BDCs are expected to generate income in the form of
dividends, certain BDCs during certain periods of time may not generate such income. The Fund will indirectly bear its proportionate
share of any management fees and other operating expenses incurred by the BDCs and of any performance-based or incentive fees
payable by the BDCs in which it invests, in addition to the expenses paid by the Fund. A BDC’s incentive fee may be very
high, vary from year to year and be payable even if the value of the BDC’s portfolio declines in a given time period. Incentive
fees may create an incentive for a BDC’s manager to make investments that are risky or more speculative than would be the
case in the absence of such compensation arrangements, and may also encourage the BDC’s manager to use leverage to increase
the return on the BDC’s investments. The use of leverage by BDCs magnifies gains and losses on amounts invested and increases
the risks associated with investing in BDCs. A BDC may make investments with a larger amount of risk of volatility and loss of
principal than other investment options and may also be highly speculative and aggressive.
The
1940 Act imposes certain constraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their
total assets primarily in securities of U.S. private companies or thinly traded U.S. public companies, cash, cash equivalents,
U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information
exists for private and thinly traded companies in which a BDC may invest and there is a risk that investors may not be able to
make a fully informed evaluation of a BDC and its portfolio of investments. With respect to investments in debt instruments, there
is a risk that the issuers of such instruments may default on their payments or declare bankruptcy. Many debt investments in which
a BDC may invest will not be rated by a credit rating agency and will be below investment grade quality. These investments are
commonly referred to as “junk bonds” and have predominantly speculative characteristics with respect to an issuer’s
capacity to make payments of interest and principal. Although lower grade securities are potentially higher yielding, they are
also characterized by high risk. In addition, the secondary market for lower grade securities may be less liquid than that of
higher rated securities. Certain BDCs may also be difficult to value since many of the assets of BDCs do not have readily ascertainable
market values.
Additionally,
a BDC may only incur indebtedness in amounts such that the BDC’s asset coverage ratio of total assets to total senior securities
equals at least 200% after such incurrence. These limitations on asset mix and leverage may affect the way that the BDC raises
capital. BDCs compete with other entities for the types of investments they make, and such entities are not necessarily subject
to the same investment constraints as BDCs.
Index-based
ETFs (and other index funds) in which the Fund may invest may not be able to replicate exactly the performance of the indices
they track or benchmark because the total return generated by the securities will be reduced by transaction costs incurred in
adjusting the actual balance of the securities. ETFs may trade at a price above (premium) or below (discount) their NAV, especially
during periods of significant market volatility or stress, causing investors to pay significantly more or less than the value
of the ETF’s underlying portfolio. Certain ETFs traded on exchanges may be thinly traded and experience large spreads between
the “ask” price quoted by a seller and the “bid” price offered by a buyer. While the creation/redemption
feature is designed to make it likely that ETF shares normally will trade close to their NAVs, market prices are not expected
to correlate exactly to the shares’ NAVs due to timing reasons, supply and demand imbalances and other factors. In addition,
disruptions to creations and redemptions, adverse developments impacting market makers, authorized participants or other market
participants, high market volatility or lack of an active trading market for an ETF’s shares (including through a trading
halt) may result in market prices that differ significantly from its NAV or to the intraday value of the ETF’s holdings.
An active trading market for shares of an ETF may not develop or be maintained. When all or a portion of an ETF’s underlying
securities trade in a foreign market that is closed during the time the domestic market in which the ETF’s shares are listed
and traded is open, there may be changes between the last quote from the closed foreign market and the value of such underlying
security during the ETF’s trading day.
In
times of market stress, market makers or authorized participants may step away from their respective roles in making a market
in shares of the ETF and in executing purchase or redemption orders. During such times, the ETF’s shares may trade at a
wider than normal discount or premium and may possibly face trading halts. Additionally, the underlying securities of an ETF may
be traded outside of a collateralized settlement system, such as the National Securities Clearing Corporation, a clearing agency
that is registered with the SEC. There are a limited number of financial institutions that may act as authorized participants
that pose collateral for certain trades on an agency basis. To the extent that these authorized participants exit the business
or are unable to proceed with creation and/or redemption orders with the ETF, and no other authorized participant is able to step
forward, ETF shares may trade at a discount to NAV and possibly face trading halts and/or delisting. Additionally, in stressed
market conditions, the market for ETF shares may become less liquid in response to deteriorating liquidity in the markets for
such ETF’s underlying portfolio holdings, and this may cause the shares of the ETF to trade at a wider than normal discount
or premium. Furthermore, purchases and redemptions of creation units primarily in cash rather than in-kind may cause an ETF to
incur certain costs, such as brokerage costs, taxable gains or other losses that it may not have incurred with an in-kind purchase
or redemption. These costs may be borne by the ETF and decrease the ETF’s NAV to the extent they are not offset by a transaction
fee payable by an authorized participant.
In
addition, index-based ETFs (and other index funds) will incur expenses not incurred by their applicable indices. Certain securities
comprising the indices tracked by these investments may, from time to time, temporarily be unavailable, which may further impede
the ability of the index-based ETFs and other index funds to track their applicable indices. Underlying Funds may not be able
to match or outperform their respective benchmarks. With sector ETFs, there is a risk that securities within the same group of
industries will decline in price due to sector-specific market or economic developments. The Fund may also invest in actively
managed ETFs that are subject to management risk as the ETF’s investment adviser will apply certain investment techniques
and risk analyses in making investment decisions. There can be no guarantee that these will produce the desired results.
Certain
of the Underlying Funds in which the Fund will invest may be taxed as regulated investment companies under Subchapter M of the
Code. To qualify and remain eligible for the special tax treatment accorded to regulated investment companies and their shareholders,
such Underlying Funds must meet certain source-of-income, asset diversification and annual distribution requirements. If an Underlying
Fund in which the Fund invests fails to qualify as a regulated investment company, such Underlying Fund would be liable for federal,
and possibly state, corporate taxes on its taxable income and gains. Such failure by an Underlying Fund could substantially reduce
the Underlying Fund’s net assets and the amount of income available for distribution to the Fund, which would in turn decrease
the total return of the Fund in respect of such investment.
The
Fund’s investments in Underlying Funds may be restricted by certain provisions of the 1940 Act. Under Section 12(d)(1)(A)
of the 1940 Act, the Fund may hold securities of an Underlying Fund in amounts which (i) do not exceed 3% of the total outstanding
voting stock of the Underlying Fund, (ii) do not exceed 5% of the value of the Fund’s total assets and (iii) when added
to all other Underlying Fund securities held by the Fund, do not exceed 10% of the value of the Fund’s total assets. Under
Section 12(d)(1)(C) of the 1940 Act, the Fund, together with any other investment companies for which the Adviser acts as an investment
adviser, may not, in the aggregate, own more than 10% of the total outstanding voting stock of a registered closed-end investment
company. Section 12(d)(1)(F) of the 1940 Act provides that the limitations of Section 12(d)(1) described above shall not apply
to securities purchased or otherwise acquired by the Fund if (i) immediately after such purchase or acquisition not more than
3% of the total outstanding stock of such Underlying Fund is owned by the Fund and all affiliated persons of the Fund, and (ii)
certain requirements are met with respect to sales charges. In addition, Rule 12d1-4 under the 1940 Act (“Rule 12d1-4”),
effective as of January 19, 2022, permits the Fund to invest in Underlying Funds beyond the limitations of Section 12(d)(1) described
above, subject to various conditions, including that the Fund enter into an investment agreement with the Underlying Fund (which
agreements may impose additional conditions on the Fund). In matters upon which the Fund is solicited to vote as a shareholder
of an Underlying Fund, the Adviser may be required to vote Underlying Fund shares in the same proportion as shares held by other
shareholders of the Underlying Fund.
|
Warrant Risks [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk [Text Block] |
|
|
|
|
|
|
|
|
|
|
|
|
Warrant
Risks
The
Fund and the Underlying Funds may invest in warrants. Warrants are securities giving the holder the right, but not the obligation,
to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a
specified period or perpetually. Warrants do not carry with them the right to dividends or voting rights with respect to the securities
that they entitle their holder to purchase and they do not represent any rights in the assets of the issuer. The value of a warrant
does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised
prior to its expiration date.
|
Common Shares [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee Table [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Load [Percent] |
[1] |
|
|
|
|
|
|
|
|
|
|
|
0.00%
|
Dividend Reinvestment and Cash Purchase Fees |
[2] |
|
|
|
|
|
|
|
|
|
|
|
$ 0
|
Other Transaction Expenses [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Transaction Expenses [Percent] |
[1] |
|
|
|
|
|
|
|
|
|
|
|
0.00%
|
Management Fees [Percent] |
[1],[3],[4] |
|
|
|
|
|
|
|
|
|
|
|
1.73%
|
Interest Expenses on Borrowings [Percent] |
[1],[4],[5] |
|
|
|
|
|
|
|
|
|
|
|
0.00%
|
Dividend and Interest Expenses on Short Sales [Percent] |
[1],[4],[5] |
|
|
|
|
|
|
|
|
|
|
|
0.18%
|
Acquired Fund Fees and Expenses [Percent] |
[1],[4],[6] |
|
|
|
|
|
|
|
|
|
|
|
1.25%
|
Other Annual Expenses [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Annual Expenses [Percent] |
[1],[4],[5] |
|
|
|
|
|
|
|
|
|
|
|
0.18%
|
Total Annual Expenses [Percent] |
[1],[4] |
|
|
|
|
|
|
|
|
|
|
|
3.34%
|
Expense Example, Year 01 |
[4] |
|
|
|
|
|
|
|
|
|
|
|
$ 34
|
Expense Example, Years 1 to 3 |
[4] |
|
|
|
|
|
|
|
|
|
|
|
103
|
Expense Example, Years 1 to 5 |
[4] |
|
|
|
|
|
|
|
|
|
|
|
174
|
Expense Example, Years 1 to 10 |
[4] |
|
|
|
|
|
|
|
|
|
|
|
$ 363
|
General Description of Registrant [Abstract] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return at Minus Ten [Percent] |
|
|
|
|
|
|
|
|
|
|
|
|
(15.92%)
|
Return at Minus Five [Percent] |
|
|
|
|
|
|
|
|
|
|
|
|
(9.07%)
|
Return at Zero [Percent] |
|
|
|
|
|
|
|
|
|
|
|
|
(2.22%)
|
Return at Plus Five [Percent] |
|
|
|
|
|
|
|
|
|
|
|
|
4.63%
|
Return at Plus Ten [Percent] |
|
|
|
|
|
|
|
|
|
|
|
|
11.48%
|
Lowest Price or Bid |
|
$ 10.96
|
$ 10.89
|
$ 11.74
|
$ 11.85
|
$ 12.56
|
$ 14.78
|
$ 14.86
|
$ 16.71
|
$ 16.75
|
$ 16.71
|
$ 13.81
|
|
Highest Price or Bid |
|
11.51
|
12.50
|
13.29
|
15.20
|
15.10
|
16.68
|
17.69
|
18.75
|
18.75
|
17.88
|
17.07
|
|
Lowest Price or Bid, NAV |
|
12.23
|
12.24
|
12.30
|
12.29
|
13.01
|
15.31
|
15.64
|
16.87
|
17.02
|
16.61
|
14.53
|
|
Highest Price or Bid, NAV |
|
$ 12.32
|
$ 12.82
|
$ 12.73
|
$ 13.82
|
$ 14.06
|
$ 15.87
|
$ 17.09
|
$ 17.12
|
$ 17.24
|
$ 17.23
|
$ 16.48
|
|
Highest Price or Bid, Premium (Discount) to NAV [Percent] |
|
(6.57%)
|
(2.50%)
|
4.40%
|
9.99%
|
7.40%
|
5.10%
|
3.51%
|
9.52%
|
8.76%
|
3.77%
|
3.58%
|
|
Lowest Price or Bid, Premium (Discount) to NAV [Percent] |
|
(10.38%)
|
(11.03%)
|
(4.55%)
|
(3.58%)
|
(3.46%)
|
(3.46%)
|
(4.99%)
|
(0.95%)
|
(1.59%)
|
0.60%
|
(4.96%)
|
|
|
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 10 -Subparagraph a
+ Details
Name: |
cef_AcquiredFundFeesAndExpensesNoteTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 10 -Subparagraph a, g, h
+ Details
Name: |
cef_AcquiredFundFeesAndExpensesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 6
+ Details
Name: |
cef_AnnualExpensesTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 9
+ Details
Name: |
cef_DividendAndInterestExpensesOnShortSalesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1
+ Details
Name: |
cef_DividendReinvestmentAndCashPurchaseFees |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_EffectsOfLeveragePurposeTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_EffectsOfLeverageTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b
+ Details
Name: |
cef_EffectsOfLeverageTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1
+ Details
Name: |
cef_ExpenseExampleTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 11
+ Details
Name: |
cef_ExpenseExampleYear01 |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 11
+ Details
Name: |
cef_ExpenseExampleYears1to10 |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 11
+ Details
Name: |
cef_ExpenseExampleYears1to3 |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 11
+ Details
Name: |
cef_ExpenseExampleYears1to5 |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1
+ Details
Name: |
cef_FeeTableAbstract |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8
+ Details
Name: |
cef_GeneralDescriptionOfRegistrantAbstract |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b
+ Details
Name: |
cef_HighestPriceOrBid |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:perShareItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b -Subparagraph Instruction 4
+ Details
Name: |
cef_HighestPriceOrBidNav |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:perShareItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b -Subparagraph Instructions 4, 5
+ Details
Name: |
cef_HighestPriceOrBidPremiumDiscountToNavPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 8
+ Details
Name: |
cef_InterestExpensesOnBorrowingsPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 2 -Paragraph b, d
+ Details
Name: |
cef_InvestmentObjectivesAndPracticesTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b
+ Details
Name: |
cef_LowestPriceOrBid |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:perShareItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b -Subparagraph Instruction 4
+ Details
Name: |
cef_LowestPriceOrBidNav |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:perShareItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b -Subparagraph Instructions 4, 5
+ Details
Name: |
cef_LowestPriceOrBidPremiumDiscountToNavPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 7 -Subparagraph b
+ Details
Name: |
cef_ManagementFeeNotBasedOnNetAssetsNoteTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 7 -Subparagraph a
+ Details
Name: |
cef_ManagementFeesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 9
+ Details
Name: |
cef_OtherAnnualExpensesAbstract |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 9
+ Details
Name: |
cef_OtherAnnualExpensesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 6
+ Details
Name: |
cef_OtherExpensesNoteTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 5
+ Details
Name: |
cef_OtherTransactionExpensesAbstract |
Namespace Prefix: |
cef_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 5
+ Details
Name: |
cef_OtherTransactionExpensesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 1
+ Details
Name: |
cef_PurposeOfFeeTableNoteTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_ReturnAtMinusFivePercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_ReturnAtMinusTenPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_ReturnAtPlusFivePercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_ReturnAtPlusTenPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph b -Subparagraph 3
+ Details
Name: |
cef_ReturnAtZeroPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 3 -Paragraph a
+ Details
Name: |
cef_RiskFactorsTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
cef_RiskTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1
+ Details
Name: |
cef_SalesLoadPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 8 -Subsection 5 -Paragraph b -Subparagraph 4
+ Details
Name: |
cef_SharePriceTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1
+ Details
Name: |
cef_ShareholderTransactionExpensesTableTextBlock |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Form N-2 -Section Item 3 -Subsection 1 -Paragraph Instruction 8
+ Details
Name: |
cef_TotalAnnualExpensesPercent |
Namespace Prefix: |
cef_ |
Data Type: |
dtr-types:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionOne of: N-1A (Mutual Fund), N-1 (Open-End Separate Account with No Variable Annuities), N-2 (Closed-End Investment Company), N-3 (Separate Account Registered as Open-End Management Investment Company), N-4 (Variable Annuity UIT Separate Account), N-5 (Small Business Investment Company), N-6 (Variable Life UIT Separate Account), S-1 or S-3 (Face Amount Certificate Company), S-6 (UIT, Non-Insurance Product).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-T -Number 232 -Section 313
+ Details
Name: |
dei_EntityInvCompanyType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:invCompanyType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
cef_RiskAxis=rmi_CompleteInvestmentProgramMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_RisksAssociatedWithOfferingsOfAdditionalCommonSharesMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_AdditionalRisksOfRightsMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_LeverageRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_MarketDiscountMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_AntiTakeoverProvisionsMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_AssetAllocationRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_ConvertibleSecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_DefensiveMeasuresMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_DerivativesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_DefaultedAndDistressedSecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_EquitySecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_ExchangeTradedNoteRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_FixedIncomeSecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_CreditRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_HighYieldSecuritiesRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_USGovernmentSecuritiesRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_InterestRateRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SovereignObligationRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_ForeignInvestingRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_IlliquidSecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_InitialPublicOfferingsRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_InvestmentAndMarketRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_LegislationPolicyAndRegulatoryRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_LIBORRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_ManagementRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_MarketDisruptionAndGeopoliticalRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_MasterLimitedPartnershipsRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_MicroSmallAndMediumSizedCompanyRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_OptionsAndFuturesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_PrivateDebtRiskMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_RealEstateInvestmentTrustRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SecuritiesLendingRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SecuritiesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SeniorLoanRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_ShortSaleRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SOFRRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SpecialPurposeAcquisitionCompaniesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_StructuredNotesRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_SwapRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_UnderlyingFundRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_RiskAxis=rmi_WarrantRisksMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
cef_SecurityAxis=rmi_CommonSharesMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
RiverNorth Opportunities (NYSE:RIV)
Historical Stock Chart
From Jul 2024 to Aug 2024
RiverNorth Opportunities (NYSE:RIV)
Historical Stock Chart
From Aug 2023 to Aug 2024