RiverNorth Flexible Municipal Income Fund II, Inc. Announces the Approval of a 6.00% Level Distribution Policy and the Declaration of Monthly Distributions of $0.10 Per Share
RiverNorth Flexible Municipal Income Fund II (NYSE: RFMZ) announced a 6.00% level distribution policy effective April 1, 2021, declaring monthly distributions of $0.10 per share for April, May, and June 2021. These distributions are based on the Fund's initial public offering price of $20.00 per share. Key dates include:
- Ex Date: April 15, 2021
- Record Date: April 16, 2021
- Payable Date: April 30, 2021
The Fund warns that distributions may involve returns of capital and are not guaranteed, depending on market conditions.
- Implementation of a 6.00% level distribution policy provides predictability for investors.
- Monthly distributions of $0.10 per share may enhance shareholder returns.
- Distributions may involve returns of capital, which can decrease total assets.
- Success of the distribution policy depends on market conditions, creating uncertainty.
RiverNorth Flexible Municipal Income Fund II, Inc. (the “Fund”) (NYSE: RFMZ) announced that its Board of Directors (the “Board”) has approved a
The Board has approved the distributions of
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
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FAQ
What is the distribution rate for RiverNorth Flexible Municipal Income Fund II (RFMZ)?
When will the monthly distributions for RFMZ be paid?
What is a level distribution policy?
Can investors reinvest distributions from RFMZ?
Are RFMZ distributions taxable?
