Robinson Opportunistic Income Fund
Build income with an opportunistic bond strategy.
Investment Objective
The Fund’s investment objective is to seek total return with an emphasis on providing current income.
Investment Management
Investment Manager
Liberty Street Advisors
Investment Sub-Advisor
Portfolio Managers
Investment Commentary
Investment Focus
For advisors seeking income for their clients, it’s not easy to find—especially through traditional vehicles. Record low interest rates have pushed yields down on conventional fixed income products such as bonds and CDs. However, advisors seeking income from alternative sources may want to consider an allocation to the Robinson Multi-Strategy Income Fund.
The Fund invests in taxable bond and income-oriented equity closed end funds in pursuit of consistent income and capital appreciation. The focus on closed-end funds may allow the purchase of bonds at a discount, enhancing the potential for additional returns. The Fund has the flexibility to invest across multiple sectors of the bond market in an effort to increase returns and income, while aiming to avoid undesirable downside risks through broad diversification.
By investing in closed end funds, the Robinson Opportunistic Income Fund facilitates liquidity because closed end funds are frequently more liquid than their underlying holdings. The Fund’s risk management approach offers the flexibility to adjust sector, credit and interest rate exposures based on the overall market environment. Management employs proprietary strategies to build and manage the portfolio, including:
- Identifying closed end funds that trade at discounts to the market value of holdings
- Utilizing trading strategies to unlock the value of these discounts
- Hedging interest rate risk through shorting a variety of futures contracts
The Fund generally holds 40 to 50 closed-end funds in its portfolio and can also invest in ETFs, mutual funds and exchange traded notes.
The Fund is managed by James C. Robinson, founder of Robinson Capital Management, LLC, the Fund’s sub-advisor. Jim also oversees the day-to-day activities of Robinson Capital Management, which he founded in 2012.
Fund Highlights
Yield
Opportunity for investors to pursue a relatively high and diversified monthly income stream.
Asset Allocation
Diversification across multiple sectors of the bond market is used in an effort to provide potential returns in excess of the overall high yield market.
Risk Management
Flexibility to adjust sector, credit, and interest rate exposures based on the market environment, aiming to avoid undesirable downside risks.
Visible Alpha
The Fund seeks to purchase closed-end funds with a discount to net asset value, which potentially delivers a meaningful additional source of returns.
Fund Facts
Inception Date
12/31/2015
Morningstar Asset Category
US Fund High Yield Bond
Benchmark
Bloomberg Barclays Global Aggregate Credit Index
Investment minimum
$2,500
Distributions
Monthly
Tickers
Class A
RBNAX
Class C
RBNCX
Institutional CLass
RBNNX
Fund Performance
| DAILY NAV as of 01/07/2021 | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| DailyNAV | $8.41 | $8.39 | $8.41 |
| NAV Change | -$0.07 | -$0.06 | -$0.07 |
| Daily Return | -0.83% | -0.71% | -0.83% |
| As of 12/31/2020 | Quarter | YTD | One Year | Three Years | Five Years | Annualized ITD | Cumulative ITD |
|---|---|---|---|---|---|---|---|
| RBNNX | 8.53% | -6.65% | -6.65% | 0.89% | 5.20% | 4.15% | 22.52% |
| RBNAX | 8.46% | -6.90% | -6.90% | 0.63% | 4.94% | 4.15% | 22.52% |
| RBNAX w/Load | 3.80% | -10.86% | -10.86% | 0.83% | 3.70% | 4.94% | 27.26% |
| RBNCX | 8.28% | -7.62% | -7.62% | -0.09% | 4.15% | 5.20% | 28.87% |
| Bloomberg Barclays Global Aggregate Credit Index | 4.03% | 10.03% | 10.03% | 5.67% | 5.91% | 5.91% | 33.24% |
Fund Disclosure
Performance data quoted represents past performance and is no guarantee of future results. Total return figures include the reinvestment of dividends and capital gains. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. For the most recent month end performance, please call (800) 207-7108. Returns showing less than one year are cumulative. The gross operating expense ratio for the Class A, C, and Institutional Shares are 3.93%, 4.68%, and 3.68%, respectively. The total net annual fund operating expenses after fee waiver and/ or pay expenses are 3.43%, 4.18%, and 3.18% for the A, C, and Institutional Shares. The contractual agreement between the Fund and the Advisor for fee waiver and/or expense reimbursement is in effect until April 30, 2021. Without the contractual agreement, performance would have been lower. Performance results with load reflect the deduction for Class A Shares of the 4.25% maximum front-end sales charge. Class C Shares are subject to a contingent deferred sales charge of 1.00% when redeemed within 12 months of purchase. Performance presented without the load would be lower if this charge was reflected. Because of ongoing market volatility, Fund performance may be subject to substantial short-term changes. *ITD represents inception-to-date; Inception 12/31/2015.
Bloomberg Barclays Global Aggregate-Credit Index covers the credit sector of the global investment-grade fixed-rate bond market. Credit issuers include corporate, sovereign (when issuing in a currency other than the sovereign’s home currency), supranational, and foreign local agencies/authorities. One cannot invest directly in an index.
Share Class Information
| As of 5/1/22 | Class A Shares | Class C Shares | Class I Shares | |
|---|---|---|---|---|
| Symbol | RBNAX | RBNCX | RBNNX | |
| Minimum Investment | $2,500 | $2,500 | $1,000,000 | |
| Maximum Sales Charge | 4.25% | None | None | |
| 12b-1 Fees | 0.25% | 1.00% | None | |
| Gross Expense Ratio | 3.92% | 4.67% | 3.67% | |
| Fee Waiver and/or Expense Reimbursement | -0.80% | -0.80% | -0.80% | |
| Net Expense Ratio* | 3.12% | 3.87% | 2.87% |
*The Fund’s Advisor has contractually agreed to waive its fees and/or pay operating expenses [excluding, as applicable, taxes, leverage interest, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses (as determined in accordance with Form N-1A), expenses incurred in connection with any merger or reorganization and extraordinary expenses such as litigation expenses] so that the total fund operating expenses do not exceed 1.60%, 2.35%, 1.35%, and 1.60% for the Class A, C, Institutional, and T Shares, respectively. The agreement is in effect until April 30, 2021.
Top Holdings
| As of 6/30/22 | % of Net Assets (Excluding Cash) |
|---|---|
| Western Asset High Income Opportunity Fund Inc | 5.80 |
| PGIM Short Duration High Yield Opportunities Fund | 5.20 |
| Credit Suisse High Yield Bond Fund | 4.94 |
| Special Opportunities Fund Inc | 4.50 |
| Western Asset Diversified Income Fund | 4.35 |
| Pioneer High Income Fund Inc | 4.22 |
| DoubleLine Yield Opportunities Fund 516,498.12 4.05 | 4.05 |
| Saba Capital Income & Opportunities Fund | 3.68 |
| TLG Acquisition One Corp | 3.54 |
| Golden Arrow Merger Corp | 3.45 |
Schedule of Distributions
| Distribution Date | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| Dec 30, 2020 | $0.0863 | $0.0807 | $0.0883 |
| Nov 19, 2020 | $0.0425 | $0.0372 | $0.0443 |
| Oct 19, 2020 | $0.0412 | $0.0358 | $0.0430 |
| Sep 17, 2020 | $0.0483 | $0.0432 | $0.0502 |
| Aug 19, 2020 | $0.0383 | $0.0329 | $0.0401 |
| Jul 17, 2020 | $0.0444 | $0.0391 | $0.0462 |
| Jun 18, 2020 | $0.0525 | $0.0471 | $0.0543 |
| May 19, 2020 | $0.0468 | $0.0416 | $0.0485 |
| Apr 17, 2020 | $0.0609 | $0.0560 | $0.0626 |
| Mar 19, 2020 | $0.0556 | $0.0497 | $0.0575 |
| Feb 19, 2020 | $0.0472 | $0.0409 | $0.0493 |
| Jan 17, 2020 | $0.0283 | $0.0217 | $0.0305 |
| Distribution Date | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| Dec 30, 2019 | $0.0651 | $0.0597 | $0.0684 |
| Nov 18, 2019 | $0.0465 | $0.0404 | $0.0485 |
| Oct 16, 2019 | $0.0465 | $0.0400 | $0.0487 |
| Sep 18, 2019 | $0.0494 | $0.0431 | $0.0515 |
| Aug 16, 2019 | $0.0449 | $0.0385 | $0.0472 |
| Jul 18, 2019 | $0.0470 | $0.0406 | $0.0491 |
| Jun 18, 2019 | $0.0482 | $0.0419 | $0.0502 |
| May 16, 2019 | $0.0465 | $0.0399 | $0.0486 |
| Apr 17, 2019 | $0.0487 | $0.0420 | $0.0509 |
| Mar 18, 2019 | $0.0508 | $0.0437 | $0.0523 |
| Feb 19, 2019 | $0.0488 | $0.0430 | $0.0508 |
| Jan 17, 2019 | $0.0493 | $0.0430 | $0.0514 |
| Distribution Date | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| Dec 28, 2018 | 0.0779 | 0.0715 | 0.0800 |
| Nov 16, 2018 | 0.0500 | 0.0436 | 0.0521 |
| Oct 16, 2018 | 0.0489 | 0.0422 | 0.0511 |
| Sep 18, 2018 | 0.0523 | 0.0458 | 0.0545 |
| Aug 16, 2018 | 0.0505 | 0.0437 | 0.0528 |
| Jul 17, 2018 | 0.0493 | 0.0425 | 0.0515 |
| Jun 18, 2018 | 0.0538 | 0.0472 | 0.0560 |
| May 16, 2018 | 0.0503 | 0.0432 | 0.0525 |
| Apr 17, 2018 | 0.0515 | 0.0448 | 0.0537 |
| Mar 16, 2018 | 0.0549 | 0.0483 | 0.0571 |
| Feb 28, 2018 | 0.0479 | 0.0418 | 0.0500 |
| Jan 31, 2018 | 0.0320 | 0.0323 | 0.0425 |
| Distribution Date | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| Dec 31, 2017 | $0.0623 | $0.0558 | $0.0646 |
| Nov 30, 2017 | $0.0530 | $0.0463 | $0.553 |
| Oct 31, 2017 | $0.0527 | $0.0456 | $0.0551 |
| Sep 29, 2017 | $0.0572 | $0.0503 | $0.0595 |
| Aug 31, 2017 | $0.0477 | $0.0401 | $0.0502 |
| Jul 31, 2017 | $0.0495 | $0.0424 | $0.0519 |
| Jun 30, 2017 | $0.0507 | $0.0441 | $0.0530 |
| May 31, 2017 | $0.0497 | $0.0429 | $0.0521 |
| Apr 28, 2017 | $0.0502 | $0.0433 | $0.0525 |
| Mar 31, 2017 | $0.0586 | $0.0518 | $0.0610 |
| Feb 28, 2017 | $0.0501 | $0.0450 | $0.0522 |
| Jan 31, 2017 | $0.0417 | $0.0348 | $0.0441 |
| Distribution Date | RBNAX | RBNCX | RBNNX |
|---|---|---|---|
| Dec 29, 2016 | $0.0664 | $0.0595 | $0.0686 |
| Nov 30, 2016 | $0.0564 | $0.0518 | $0.0598 |
| Oct 31, 2016 | $0.0670 | $0.0602 | $0.0693 |
| Sep 30, 2016 | $0.0677 | $0.0620 | $0.0699 |
| Aug 31, 2016 | $0.0628 | $0.0565 | $0.0651 |
| Jul 29, 2016 | $0.0696 | $0.0633 | $0.0717 |
| Jun 30, 2016 | $0.0710 | $0.0641 | $0.0724 |
| May 31, 2016 | $0.0686 | $0.0630 | $0.0708 |
| Apr 29, 2016 | $0.0650 | $0.0585 | $0.0651 |
| Mar 31, 2016 | $0.0798 | $0.0799 | $0.0803 |
| Feb 29, 2016 | $0.0670 | $0.0618 | $0.0687 |
| Jan 29, 2016 | $0.0375 | $0.0313 | $0.0400 |
Important Risks and Disclosures:
Effective November 12, 2019, changes were made to the Fund’s principal investment strategy. In addition to investing in CEFs, the Fund may invest in open-end registered investment companies (“Mutual Funds”), Exchange-Traded Funds (“ETFs”) or Exchange-Traded Notes (“ETNs”) as part of the principal investment strategy.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus and summary prospectus, a copy of which may be obtained on this website or by calling (800) 207-7108. Please read the prospectus or summary prospectus carefully before you invest.
An investment in the Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus:
Market Turbulence Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, including the U.S. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
Market Risk: The market price of a security may decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular issuer, company, or asset class. Local, regional or global events such as the spread of infectious illness or other events could have a significant impact on a security or instrument.
High Yield (“Junk Bond”) Risk: High yield (“junk”) bonds are speculative, involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities.
Closed-End Fund (CEF), Exchange-Traded Fund (ETF) and open-end fund (Mutual Fund) risk: The Fund’s investments in CEFs, ETFs and Mutual Funds (“underlying funds”) are subject to various risks, including reliance on management’s ability to manage the underlying fund’s portfolio, risks associated with the underlying securities held by the underlying fund, fluctuation in the market value of the underlying fund’s shares, and the Fund bearing a pro rata share of the fees and expenses of each underlying fund in which the Fund invests.
Management and Strategy: The evaluation and selection of the Fund’s investments depend on the judgment of the Fund’s Sub-Advisor about the quality, relative yield, value or market trends affecting a particular security, industry, sector or region, which may prove to be incorrect.
Derivatives Risk: The Fund and the underlying funds may use futures contracts, options, swap agreements, and/or sell securities short. Futures contracts may cause the value of the Fund’s shares to be more volatile and expose the Fund to leverage and tracking risks; the Fund may not fully benefit from or may lose money on option or shorting strategies; swaps may be leveraged, are subject to counterparty risk and may be difficult to value or liquidate.
Futures Risk: Use of future contacts by the Fund or underlying funds may cause the value of the Fund’s share to be more volatile and exposes the Fund to leverage, tracking, and under certain market conditions, liquidity risk.
Leveraging Risk: The underlying Funds in which the Fund invests may be leveraged as a result of borrowing or other investment techniques. As a result, the Fund will be exposed indirectly to leverage through its investment in an underlying fund that utilizes leverage, which may expose the Fund to higher volatility and possible diminishment of long-term returns. Certain Fund transactions, including taking short positions in financial instruments, will give rise to a form of leverage. The use of leverage, such as entering into futures contracts, options, and short sales, may magnify the Fund’s gains or losses and make the Fund more volatile.
Fixed income/Interest Rate Risk: A rise in interest rates could negatively impact the value of the Fund’s shares. Generally, fixed income securities decrease in value if interest rates rise, and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities.
ETN Risk: Investing in ETNs exposes the Fund to the credit risks of the issuer. Shares of ETNs may be less liquid despite being typically traded on securities exchanges and may have large bid and ask spreads. Shares of ETNs may at time trade at a premium or discount to their intrinsic value.
Tax Risk: There is no guarantee that the Fund’s distributions will be characterized as income for U.S. federal income tax purposes. For example, the Fund’s opportunistic trading strategies may result in a portion of the Fund’s distributions to shareholders being characterized as capital gains.
Liquidity Risk: There can be no guarantee that an active market in shares of CEFs and ETFs held by the Fund will exist. The Fund may not be able to sell some or all of the investments it holds due to a lack of demand in the marketplace or other factors such as market turmoil, or if the Fund is forced to sell an asset to meet redemption requests, it may only be able to sell those investments at a loss. Liquid investments may become illiquid or less liquid after purchase by the Fund, particularly during periods of market turmoil.
Portfolio Turnover Risk: The Fund’s turnover rate may be high. A high turnover rate may lead to higher transaction costs, a greater number of taxable transactions, and negatively affect the Fund’s performance.
Bank Loan Risk: The underlying funds may invest in loan participations of any quality, including “distressed” companies with respect to which there is a substantial risk of losing the entire amount invested. Bank loans may not be considered securities under U.S. federal securities law and, as a result, investments in them by the underlying funds may not have the protection of federal securities laws.
LIBOR Risk: The underlying funds may invest in securities, such as senior bank loans, that utilize the London Interbank Offered Rate (“LIBOR”), the most common benchmark interest rate index used to make adjustments to variable-rate loans, which is expected to expire by the end of 2021. Any effects of the transition away from LIBOR could result in losses to the underlying funds in which the Fund invests and to the Fund. These effects could occur prior to the end of 2021.
Convertible Securities Risk: The underlying funds may invest in convertible securities, which are subject to market risk, interest rate risk, and credit risk. Convertible securities are typically issued by smaller capitalized companies with stock prices that may be more volatile than those of other companies.
Preferred Stock Risk: The underlying funds may invest in preferred stock, which is subject to company-specific and market risks applicable to equity securities, and is also sensitive to changes in the company’s creditworthiness, the ability of the company to make payments on the preferred stock, and changes in interest rates, typically declining in value if interest rates rise.
The Fund may not be suitable for all investors. We encourage you to consult with appropriate financial professionals before considering an investment in the Fund.
Why A Taxable Closed-End Mutual Fund?
Buy At A Discount
Attractive Income
Diversification
Closed-end fund offer access to a diversified portfolio with potential of capital appreciation and income generation, while attempting to minimize issue-specific credit risks.
Liquidity
Closed-end funds that offer portions of the issuer’s capital structure—i.e., senior bank loans—are frequently more liquid than the underlying holdings.