Rockefeller Fund Launches Interval Fund for Municipal Investments

Introduction of Rockefeller Municipal Opportunities Fund

Rockefeller Asset Management, the asset management division of Rockefeller Capital Management, recently announced the launch of the Rockefeller Municipal Opportunities Fund (RKMIX). This innovative fund serves as an unlisted closed-end interval fund, marking a significant step in Rockefeller's strategy to enhance its offerings in municipal finance.

Fund Structure and Objectives

The primary aim of RKMIX is to provide investors with vital exposure to a blend of high yield and high-grade municipal bonds. This approach is designed to deliver substantial tax-exempt income for investors. The quarterly liquid interval fund structure allows Rockefeller’s experienced municipal portfolio management team to take advantage of relative value opportunities within a complex and fragmented municipal market.

Advantages of the Interval Fund Model

According to Alex Petrone, the Director of Fixed Income at Rockefeller Asset Management, the interval fund format presents unique advantages for municipal investors. By restricting redemptions to a quarterly basis instead of daily, the team is better positioned to capitalize on complexities and liquidity premiums throughout the municipal sector. This strategy is aimed at optimizing returns during periods of market dislocation.

Leadership and Expertise

Managing the Rockefeller Municipal Opportunities Fund will be seasoned portfolio managers Scott Cottier, CFA, Mark DeMitry, CFA, and Michael Camarella, CFA. This trio joined the Rockefeller team in mid-2024, bringing over twenty years of collaborative investment experience. Prior to joining Rockefeller, they held managerial roles overseeing strategies with assets exceeding $25 billion.

Insights on Municipal Opportunities

In discussing the current landscape for municipal investments, Cottier emphasized that opportunistic municipals are crucial for US tax-paying investors, propelled by appealing yields and a robust fundamental environment. The team is eager to expand Rockefeller’s existing product range and leverage their expertise to navigate and exploit valuable investment opportunities in the municipal market.

About Rockefeller Asset Management

Rockefeller Asset Management caters to a broad spectrum of clients, including institutions and financial professionals, with its diverse offerings in equity, fixed income, and alternative investment solutions. The firm is dedicated to fostering partnerships that prioritize the needs and performance objectives of its clients. By the end of September 2024, Rockefeller Asset Management reported $16.3 billion in assets under supervision.

Considerations for Investors

The Rockefeller Municipal Opportunities Fund is classified as a continuously offered, non-diversified closed-end management investment company functioning as an interval fund. Prospective investors should be aware of the associated risks:

• The Fund’s Common Shares are not listed on any national securities exchange.
• Investors requiring immediate access to their funds should consider other options.
• Despite periodic repurchase offers, Common Shares should be viewed as illiquid investments.
• Market conditions may affect the ability to sell shares at desired times or amounts.
• Distributions to shareholders may vary and cannot be guaranteed.

Investing in municipal securities involves particular risks, including potential issues stemming from political events, economic conditions, or credit downgrades. The Fund may invest in lower-rated or non-investment grade securities, which are inherently more speculative. Value fluctuations in the Fund's assets may occur as interest rates change, and some investments may be affected by alternative minimum tax (AMT) considerations.

Conclusion

For those considering investing in the Rockefeller Municipal Opportunities Fund, it is essential to evaluate the investment goals, risks, and fees associated carefully. Individuals can access a prospectus for more details and should review it thoroughly before making any investment decisions. This fund represents an exciting opportunity for investors looking to diversify through the potential of the municipal bond market.

Frequently Asked Questions

What is the Rockefeller Municipal Opportunities Fund?

The Rockefeller Municipal Opportunities Fund (RKMIX) is an unlisted closed-end interval fund focused on high yield and high-grade municipal bonds.

Who manages the Rockefeller Municipal Opportunities Fund?

The fund is managed by experienced portfolio managers Scott Cottier, Mark DeMitry, and Michael Camarella, who collectively bring over two decades of investment experience.

What are the risk factors associated with the fund?

Investors should consider risks such as liquidity issues, market conditions, and the potential for varying distributions, along with general investment risks tied to the municipal bond market.

How can I invest in the Rockefeller Municipal Opportunities Fund?

Investors should review the fund's prospectus and contact Rockefeller Asset Management representatives for guidance on investments.

Is the fund suitable for short-term investors?

The fund's interval structure, which limits redemptions to quarterly, may not be suitable for investors requiring short-term liquidity.

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