City National Rochdale Launches New Closed-End Interval Fund With a Focus on Collateralized Loan Obligations
City National Rochdale, a direct subsidiary of City National Bank, announced the launch of the City National Rochdale Strategic Credit Fund (CNROX), a Closed-End Interval Fund registered under the Investment Company Act of 1940.
LOS ANGELES – City National Rochdale, a direct subsidiary of City National Bank, today announced the launch of the City National Rochdale Strategic Credit Fund (CNROX), a Closed-End Interval Fund registered under the Investment Company Act of 1940. The fund’s primary objective is to generate current income; its secondary objective is long-term capital appreciation. The fund is focused on the collateralized loan obligation (CLO) market. It seeks to take advantage of generally attractive yields from underlying senior secured loans and capitalizes on City National Rochdale’s extensive understanding of the potential benefits associated with being an equity tranche investor in a fixed-income diversified pool of loans.
City National Rochdale has partnered with CIFC Asset Management LLC, a leading CLO manager whose process focuses on timely, fundamental credit research. Based in New York, CIFC will act as the fund’s sub-advisor and is currently one of the largest managers of CLO assets in the world.
“We have a successful history with this asset class, which may provide investors with better returns and diversification through a broader credit spectrum and is therefore an enhancement to traditional asset categories as part of a diversified portfolio*,” said Matthew Peron, chief investment officer for City National Rochdale, which manages more than $38.4 billion** in assets. “We are an innovator in bringing this asset class, typically only available to institutional clients, to our high-net-worth clients. We are partnering with one of the largest managers of CLO assets in the world with a proven process for top-notch credit research.”
“We are pleased to partner with City National Rochdale to bring this attractive asset class to a broader investor base,” said Steve Vaccaro, chief executive officer and chief investment officer of CIFC. “We believe City National Rochdale’s long-term track record of success investing with this asset class combined with our in-depth knowledge of the underlying collateral will provide a solid foundation for generating attractive risk-adjusted returns for the fund’s clients.”
City National Rochdale has been invested in this asset class through the City National Rochdale Fixed Income Opportunity Fund (RIMOX), a successful multibillion-dollar opportunistic income fund that has invested in the CLO space for years as part of its strategy.
*Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss.
**As of 10/31/2018
The Fund’s gross expense ratio is 3.16%. The net expense ratio is 1.95%. Waivers are contractual and will continue for one year from the date of the Prospectus. Waivers shall automatically renew for an additional one-year period unless sooner terminated by the fund or by the Board of Trustees upon 60 days’ written notice to the Adviser or termination of the advisory agreement between the fund and the Adviser.
About City National
With $50.3 billion in assets, City National Bank provides banking, investment and trust services through 72 offices, including 19 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City, Nashville, Atlanta, Minneapolis and Washington, D.C. In addition, the company and its investment affiliates manage or administer $67.5 billion in client investment assets.
City National and City National Rochdale are part of Royal Bank of Canada (RBC), one of North America’s leading diversified financial services companies. RBC serves more than 16 million personal, business, public sector and institutional clients through offices in Canada, the United States and 35 other countries. RBC in the USA includes City National, RBC Wealth Management-U.S. and RBC Capital Markets in New York.
For more information about City National, visit the company’s website at cnb.com.
All figures are as of October 31, 2018.
About City National Rochdale
For more than 30 years, City National Rochdale has specialized in intelligently personalized portfolio management for high-net worth individuals, families, and institutions, and provides clients with service that relates all investment decisions to each client’s personal benchmark. City National Rochdale, headquartered in Beverly Hills and New York City with offices around the country, currently manages over $38.4 billion in assets (as of 10/31/2018) and is a wholly-owned subsidiary of City National Bank. City National Rochdale is an affiliate of City National Bank, which is a subsidiary of Royal Bank of Canada. For more information, visit www.cnr.com.
About CIFC Asset Management
Founded in 2005, CIFC is a credit manager with over $21 billion of assets under management specializing in U.S. corporate and structured credit strategies. Headquartered in New York, CIFC is a SEC registered investment adviser. Serving institutional investors globally, CIFC is one of the largest managers of senior secured corporate credit. For more information, please visit CIFC’s website at www.cifc.com.
City National Rochdale, a direct subsidiary of City National Bank, announced the launch of the City National Rochdale Strategic Credit Fund (CNROX), a Closed-End Interval Fund registered under the Investment Company Act of 1940.