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OK, good! And to clarify... muni and other target-term closed-end funds and ETF's change their composition a bit as they prepare to liquidate. From the list of four funds I shared, one liquidated in 2018 (ooops), one has a year or two to go and is made up of mostly bonds but those funds that have less than a year to liquidation will start replacing maturing (or, heaven forbid, defaulted) bonds with something high grade and liquid like US Treasury bills or investment grade corporates. Normally, a fund without a term date won't do something like that.

Oh and I believe iShares and/or Invesco have target-term line ups with muni ETF's. Here is one: IBMK. Note that the ER is only 0.18%. Doubt you'll find CEF's that are that "cheap". The advantage of CEF's is potential discount to NAV and often higher yielding but lower grade securities plus extra "juice" by way of derivatives, lending, etc. That little extra can go either way: sometimes you get extra bump in returns but other times it can turns things upside down.
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I recently bought into RiverNorth Managed Duration Muni Inc Fd, ticker RMM. The fund has only been in existence since July. Per MS, it's trading at a 4.7% discount and has a distribution rate of 5.68% whhich is paid monthly. MS does not have information on the funds holdings and there is no leverage ratio provided. Too good to be true, right?

Any thoughts/comments will be most welcome.
jackie

=====================================
I did a quick lookup via Fidelity, and got the same info, or lack thereof. I guess my main question would be, what prompted you to buy it, and are those reasons still pertinent?

Bill
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I recently bought into RiverNorth Managed Duration Muni Inc Fd, ticker RMM. The fund has only been in existence since July. Per MS, it's trading at a 4.7% discount and has a distribution rate of 5.68% whhich is paid monthly. MS does not have information on the funds holdings and there is no leverage ratio provided. Too good to be true, right?

According to Barron's https://finance.yahoo.com/m/3bbf11e6-c4dc-330e-a232-c8eb95c6... it combines a traditional muni investment strategy with one focused on buying closed-end muni funds trading at a discount to asset value. It trades around $20 and yields 5.5%.

I can't find an expense ratio for it, but presumably, if it's buying other closed end funds, it's assets would also have expense ratios that may or may not be accounted for when they quote their expense ratio. However, they also don't have listings for what their holdings are.

I guess I would echo Bill's question - why did you buy it, and do those reasons still hold true?

AJ
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I see some mention in their prospectus page 15, but too convoluted for me to figure out if that's all there is. They're showing total annual exp as as 4.07% just by word search (ER). And Example 9 looks ominous but I didn't dig further.

https://www.rivernorth.com/pdf/rivernorth.rmm.prospectus.pdf...
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... but too convoluted for me to figure out if that's all there is.

Then I'd venture that you shouldn't have bought it.

I skimmed the prospectus, noted the high expense ratio (which doesn't factor in the expenses on the CEFs this fund buys) and also the relatively near-term wind-down plan.

There are plenty of muni funds and ETFs with low expenses and good track records from which to choose. Unless you have a compelling reason to choose this black-box, I'd sell it and move on.
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I didn't, the OP did.

But I'd pass on the EXP alone too, too high by ~4%
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Many thanks to all who responded to my insipid post! Why did I buy RMM? I was looking for muni funds and up popped it's 5% distribution and a whopping 4-month record of making the payments. I'm going to get out and just sit on the cash. I've been parking cash in CD's over the past several years, but the returns there are hardly worth the effort at this time. I figured that even if I lost 3% overall in this fund, the 2% tax-free I didn't lose could be a viable alternative.

I'm glad I found this board. I'm a long-time MF member and it has served me well. But I have had trouble finding active discussion boards in the last year or two that aren't focused primarily on tech and growth stocks.

Any rec's appreciated!

jackie
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...Why did I buy RMM? I was looking for muni funds...

You might be interested in checking out BLE. One of the frequent posters on this board (I think it was pauleckler) posted a while back about it. That is where some of my money is going when I have after tax money to invest.

Jim
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Whenever I consider buying closed-end funds, I head on over to cefconnect.com as a start. If I see that a fund has N/A in the Expenses area then I get suspicious. Is the fund too new (that's the case here) or just not able to convey that information in a way that CEFConnect's data feed can pick it up? (I think they have Morningstar manage that for them.) I usually stay away from funds that are under 1 year since inception and those that are secretive about how the fund is managed (and thus don't share much information on sponsor's Web sites). Just my preferences.

Additionally, here is this fund's Web site:
https://www.rivernorth.com/closed-end-funds/rmm

As of the point of inception, the expense ratio was north of 2%. Better than 4% but ... yikes.
"The total annual expense ratio as a percentage of net assets attributable to common shares including acquired fund fees and expenses, as of July 25, 2019, is 2.14%."

If you are looking for a muni CEF then use CEFconnect's "Fund screener". You can sort by discount, expense ratio, fund name, etc. Pretty helpful, in my opinion.

Lastly, several firms (Nuveen, Blackrock and a few others) have muni term CEF's. While all of them are supposed to liquidate around a particular date, some even state at what price that will happen which is handy. I'm not advocating them to be better than the funds that trade perpetually... just wanted to mention as their underlying security mix will change over time and, obviously, one day the fund will no longer trade at all which may be a surprise to those that are not very actively managing their portfolios. Here are some of the terms funds you will likely find as you run a muni search:
NHA
BPK
BKK
BTT

Hope this helps!
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I didn't, the OP did.

Sorry!
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""While RiverNorth Capital Management, LLC ("RiverNorth") believes markets are generally efficient, closed-end funds offer a unique structure whereby investors can purchase a diversified fund and potentially generate additional return through the change in the relationship between the closed-end fund's market price and Net Asset Value (NAV)""

So it sounds like they are chasing some capital gains. Wouldn't those be taxable? The name of their fund might be misleading to those seeking only tax-exempt income.
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Your post was very helpful! Like the limited-term funds possibility which would not have occurred to me to even look for. And thanks to Jim for the BLE reference.

jackie
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OK, good! And to clarify... muni and other target-term closed-end funds and ETF's change their composition a bit as they prepare to liquidate. From the list of four funds I shared, one liquidated in 2018 (ooops), one has a year or two to go and is made up of mostly bonds but those funds that have less than a year to liquidation will start replacing maturing (or, heaven forbid, defaulted) bonds with something high grade and liquid like US Treasury bills or investment grade corporates. Normally, a fund without a term date won't do something like that.

Oh and I believe iShares and/or Invesco have target-term line ups with muni ETF's. Here is one: IBMK. Note that the ER is only 0.18%. Doubt you'll find CEF's that are that "cheap". The advantage of CEF's is potential discount to NAV and often higher yielding but lower grade securities plus extra "juice" by way of derivatives, lending, etc. That little extra can go either way: sometimes you get extra bump in returns but other times it can turns things upside down.
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