RiverNorth Launches RiverNorth Dynamic Buy-Write Fund

CHICAGO, Oct. 23, 2012 /PRNewswire/ -- RiverNorth Capital Management, LLC, a leading investment management firm specializing in opportunistic investment strategies, announced today the launch of a new options/volatility mutual fund: the RiverNorth Dynamic Buy-Write Fund (RNBWX).

(Logo: http://photos.prnewswire.com/prnh/20120118/NY38010LOGO )

Different from most other buy-write – also known as covered call - investment strategies, in which an investor buys a single security or portfolio of securities and writes (sells) calls against the underlying positions, the RiverNorth Dynamic Buy-Write Fund is constructed by selling what the Adviser believes to be the most attractive covered equity options. "We believe the options market can be inefficient at times. Therefore, our security selection is driven by opportunities within the options marketplace, as opposed to underlying securities selection like most buy-write funds," said Eric Metz, CFA, Portfolio Manager and Derivatives Strategist at RiverNorth.  The Fund is dynamic in nature, with the portfolio rebalanced frequently with respect to market exposure and associated risks.

Buy-write strategies provide an alternative to traditional long-only equity exposure for investors and allow them to invest in the equity markets with potentially lower volatility while providing income from option premiums.  "The potential advantages of a buy-write strategy are gaining exposure to returns from option premiums while simultaneously attempting to lower portfolio volatility and mitigate downside exposure," added Mr. Metz.

The Fund is a no-load vehicle and utilizes a strategy that capitalizes on implied volatility mispricing in the equity options market, seeking to generate alpha through the volatility management of risks inherent in options portfolios, rather than through individual security selection. Assets are allocated across U.S. exchange-listed equity options, equities and exchange-traded funds. It is designed to complement or replace alternative equity allocations and seeks to provide a greater risk-adjusted return than the S&P 500 Index.

"The RiverNorth Dynamic Buy-Write Fund embodies our commitment to offer opportunistic investment strategies to investors seeking varied sources of alpha generation. We launched the Fund because of the distinct need within the marketplace for an alternative to traditional buy-write funds or traditional equity," said Brian Schmucker, Chief Executive Officer of RiverNorth. Mr. Schmucker added, "Eric Metz has over a decade of experience implementing volatility-oriented strategies in a variety of investment vehicles."

About RiverNorth
RiverNorth Capital Management, LLC is a leading investment management firm specializing in opportunistic investment strategies including the trading of closed-end funds and volatility, managing approximately $2.1 billion in assets as of September 30, 2012. RiverNorth typically favors under-followed, specialty asset classes and markets where the potential to exploit inefficiencies is greatest. RiverNorth also serves as the Investment Adviser to the RiverNorth/DoubleLine Strategic Income Fund (Class I Symbol: RNSIX, Class R Symbol: RNDLX), the RiverNorth Core Opportunity Fund (RNCOX) and the RiverNorth/Manning & Napier Dividend Income Fund (Class I Symbol: RNDIX, Class R Symbol: RNMNX).

RiverNorth is also the General Partner of multiple private investment partnerships. Headquartered in Chicago, RiverNorth's offices can be reached at (312) 832-1440 or [email protected]. For more information, please visit www.rivernorth.com.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a copy of the Fund's prospectus by calling 1-888-848-7569.

Fund Risks

Exchange Traded Fund Risk—exchange traded funds may not correlate to designated indices and have additional fees and expenses, including the duplication of management fees. Focused Security Risk—the value of the Fund may decrease in response to the activities and financial prospects of individual securities in the Fund's portfolio.  Foreign Investing/ADR Risk— foreign securities may be subject to inefficient or volatile markets, different regulatory regimes or different tax policies.  Large Company Risk—the Fund may have fewer investment opportunities than funds that invest in companies of all capitalization ranges.  Management Risk-- there is no guarantee that the adviser's investment decisions will produce the desired results.  Market Risk – economic conditions, interest rates and political events may affect the securities markets.  New Fund Risk—the Fund is a mutual fund with limited operating history.  Non-Diversified Risk—changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.  Options Risk—using options involves the exercise of skill and judgment.  Options may expire worthless or not perform as expected.  Portfolio Turnover Risk – increased portfolio turnover results in higher brokerage expenses and may impact the tax status of distributions.  Tax Risk—gains distributed will be categorized as short-term capital gains, which are subject to higher tax rates than long-term capital gains.  Current tax laws are subject to change.  Transaction Cost Risk—the expected high rate of portfolio turnover will likely cause the Fund to incur higher brokerage charges than those associated with an average equity mutual fund.

Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta).  The S&P 500 Index is a capitalization-weighted index of 500 stocks.  The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Distributed by ALPS Distributors, Inc., Denver, CO, Member FINRA.

ALPS Distributors, Inc. is unaffiliated with RiverNorth Capital Management, LLC.

The Fund is new and has limited operating history.

CFA^® is a trademark owned by the CFA Institute.

RVN000329 20141101

SOURCE RiverNorth Capital Management, LLC