RiverNorth Flexible Municipal Income Fund II, Inc. Announces the Approval of a 6.00% Level Distribution Policy & the Declarat...
April 01 2021 - 4:10PM
Business Wire
RiverNorth Flexible Municipal Income Fund II, Inc. (the “Fund”)
(NYSE: RFMZ) announced that its Board of Directors (the “Board”)
has approved a 6.00% level distribution policy effective April 1,
2021. Accordingly, the Fund is declaring monthly distributions for
April, May and June 2021.
The Board has approved the distributions of $0.10 per share of
common stock, payable on the dates noted below. In accordance with
the level distribution policy, the rate has been set equal to 6.00%
of the Fund’s initial public offering price of $20.00 per
share.
The following dates apply to the distributions declared:
Ex Date
Record Date
Payable Date
April 15, 2021
April 16, 2021
April 30, 2021
May 13, 2021
May 14, 2021
May 28, 2021
June 15, 2021
June 16, 2021
June 30, 2021
Level Distribution Policy
As detailed in the prospectus, the Fund is implementing a level
distribution policy. The Fund’s intention under the level
distribution policy is to provide for monthly distributions to
stockholders at a constant and fixed (but not guaranteed) rate.
However, there can be no guarantee that the distribution policy
will be successful in its goals. The Fund’s ability to maintain a
stable level of distributions to stockholders will depend on a
number of factors, including changes in the financial market,
market interest rates, and performance of overall equity and fixed
income markets. As portfolio and market conditions change, the
ability of the Fund to continue to make distributions in accordance
with the level distribution policy may be affected.
The Board expects that any declaration of distributions to
stockholders, including final amounts and dates applicable to each,
will be made and announced quarterly. Stockholders have the option
of reinvesting these distributions in additional common shares
through the Fund’s automatic dividend reinvestment plan, or
electing to receive cash by contacting DST Systems, Inc. (the “Plan
Administrator”). For further information, stockholders should
carefully read the description of the dividend reinvestment plan in
the prospectus.
The Fund may at times, in its discretion, pay out less than the
entire amount of net investment income earned in any particular
period and may at times pay out such accumulated undistributed
income in addition to net investment income earned in other periods
in order to permit the Fund to maintain a stable level of
distributions. As a result, the distribution paid by the Fund to
stockholders for any particular period may be more or less than the
amount of net investment income earned by the Fund during such
period.
To the extent that sufficient investment income is not available
on a monthly basis, the Fund’s distributions may consist of return
of capital in order to maintain the distribution amount. A return
of capital occurs when some or all of the money that stockholders
invested in the Fund is paid back to them. A return of capital does
not necessarily reflect the Fund’s investment performance and
should not be confused with ‘yield’ or ‘income.’ Any such returns
of capital will decrease the Fund’s total assets and, therefore,
could have the effect of increasing the Fund’s expense ratio. In
addition, the level distribution policy may require the Fund to
sell its portfolio securities at a less than opportune time to meet
the distribution amount.
Monthly distributions from the Fund are expected to be generally
exempt from regular U.S. federal income taxes, however, a portion
of the Fund’s distributions may (i) be subject to U.S. federal
income tax, (ii) be includable in taxable income for purposes of
the federal alternative minimum tax, or (iii) constitute a return
of capital. Such distributions will also generally be subject to
state and local taxes. RiverNorth does not provide tax advice;
consult a professional tax advisor regarding your specific tax
situation.
Investors should not make any conclusions about the Fund’s
investment performance from the amount of the Fund’s distributions
or the Fund’s level distribution policy. With each distribution
that does not consist solely of net investment income, the Fund
will issue a notice to stockholders that will provide detailed
information regarding the amount and composition of the
distribution and other related information. The amounts and sources
of distributions reported in the notice to stockholders are only
estimates and are not being provided for tax reporting purposes.
The actual amounts and sources of the distributions for tax
reporting purposes will depend upon the Fund’s investment
experience during its full fiscal year and may be subject to
changes based on tax regulations. The Fund will send individual
stockholders a Form 1099-DIV for the calendar year that will tell
them how to report these distributions for federal income tax
purposes. In addition, the source of the monthly distributions will
be available on www.rivernorth.com.
The investment objective of the Fund is current income exempt
from regular U.S. federal income taxes (but which may be includable
in taxable income for purposes of the Federal alternative minimum
tax). The Fund’s secondary investment objective is total
return.
The Fund is a closed-end fund and does not continuously issue
stock for sale as open-end mutual funds do. The Fund now trades in
the secondary market. Investors wishing to buy or sell stock need
to place orders through an intermediary or broker. The share price
of a closed-end fund is based on the market value. RiverNorth
Capital Management, LLC is the investment adviser to the Fund.
MacKay Shields LLC is the sub-adviser to the Fund. RiverNorth is
not affiliated with MacKay Shields. ALPS Distributors, Inc. member
FINRA is not affiliated with RiverNorth Capital Management,
LLC.
The Fund is new and has limited performance history. An
investment in the Fund is not appropriate for all investors and is
not intended to be a complete investment program. The Fund is
designed as a long-term investment and not as a trading
vehicle.
Risk is inherent in all investing. Investing in any investment
company security involves risk, including the risk that you may
receive little or no return on your investment or even that you may
lose part or all of your investment. Therefore, before investing in
the Common Shares, you should consider the risks as well as the
other information in the prospectus.
Investors should read the Fund’s prospectus and consider the
Fund's investment objective, risks, charges and expenses carefully
before investing. For more information, please read the prospectus,
call your financial professional or call 844.569.4750
RiverNorth Capital Management, LLC
RiverNorth Capital Management, LLC is an investment management
firm founded in 2000. With $4.9 billion1 in assets under management
as of February 28, 2021, RiverNorth specializes in opportunistic
investment strategies in niche markets where the potential to
exploit inefficiencies is greatest. RiverNorth is an institutional
investment manager to registered funds, private funds and
separately managed accounts.
1 Firm AUM reflects Managed Assets which includes the effects of
leverage and investments in affiliated funds.
Chris Lakumb is a registered representative of ALPS
Distributors, Inc.
RiverNorth® is a registered trademark of RiverNorth Capital
Management, LLC. ©2000-2020 RiverNorth Capital Management, LLC. All
rights reserved. ALPS Distributors, Inc. is the FINRA Member Firm.
RMI000206 Exp. 3.31.22
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version on businesswire.com: https://www.businesswire.com/news/home/20210401005918/en/
Investor Contact Chris Lakumb, CFA, CAIA 312.445.2266
clakumb@rivernorth.com
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