Vmbook Online ordering
Alps Riverfront Strategic Income
Alps Riverfront Strategic Income (ticker symbol: RIGS) is a non-diversified closed-end investment company that seeks to provide current income and capital appreciation to its investors. It was listed on the New York Stock Exchange (NYSE) in 2013.
Here are some key points to know about Alps Riverfront Strategic Income:
1. Investment Objective: The primary objective of the fund is to generate current income with a secondary focus on capital appreciation. It seeks to achieve this by investing in a portfolio of debt and income-generating securities, including high-yield bonds, leveraged loans, and structured finance instruments.
2. Portfolio Composition: The fund's portfolio is primarily invested in high-yield bonds (59.35% as of Jan 2023), followed by leveraged loans (25.13%), structured finance instruments (10.43%), and other income-generating securities (5.09%). The fund's investment universe includes both domestic and foreign issuers, with an emphasis on middle-market companies.
3. Investment Strategy: The fund's investment strategy involves identifying undervalued or overlooked securities in the market. It may employ a combination of top-down and bottom-up approaches and uses various analytical tools and risk management techniques to generate returns.
4. Performance: Alps Riverfront Strategic Income has delivered a decent performance since its inception, with a net asset value (NAV) total return of 42.81% (annualized) as of January 2023. Its one-year and three-year returns are 14.34% (as of Jan 2023) and 13.10% (as of Jan 2023), respectively.
5. Dividend Yield: The fund pays out a monthly dividend, and its dividend yield has been relatively consistent over the years. The 12-month trailing dividend yield for RIGS was 8.95% as of January 2023, which is quite attractive compared to other investment options with similar risk profiles.
6. Expenses and Fees: Alps Riverfront Strategic Income charges a management fee of 1.25% of its total net assets, which is slightly below the category average for global bond funds. The fund's total operating expenses, including other expenses like administrative and shareholder servicing costs, are capped at 1.50% of its average net assets.
7. Distribution Policy: RIGS employs a managed distribution policy, declaring monthly dividends at a rate that may alternately benefit from realized capital gains, where necessary. This approach aims to provide a relatively stable and attractive income stream to shareholders, while also aiming to minimize return of capital.
8. Share Repurchase Program: In 2022, the company authorized a $50 million share repurchase program to purchase its common stock on the open market. This program represents around 13.6% of the fund's total shares outstanding as of January 2023, indicating management's commitment to enhancing shareholder value.
9. Market Capitalization and Liquidity: With a market capitalization of around $350 million (as of Jan 2023), RIGS is a relatively smaller closed-end fund. However, it has decent liquidity due to its listing on the NYSE, which makes buying and selling shares relatively easy for investors.
10. Leadership: Alps Riverfront Strategic Income is overseen by an experienced management team, including portfolio managers with expertise in credit, high-yield bonds, and structured finance. The fund's investment advisor, Alps Advisors, Inc., is a registered investment advisor that manages several other closed-end funds focused on income generation and capital appreciation.
Keep in mind that investing in any security carries inherent risks, and it's crucial to assess your personal risk tolerance, investment goals, and time horizon before deciding to invest in Alps Riverfront Strategic Income or similar securities. Always research thoroughly, consult financial advisors if needed, and keep an eye on market trends and performance before making investment decisions.