RiverNorth Managed Duration Municipal Income Fund II, Inc. — Cyborg Score 6/10

Solid
Asset Management

Strategic Profile

The fund's primary investment objective is current income exempt from regular U.S. federal income taxes, with a secondary objective of total return. The fund combines a municipal closed-end fund strategy with MacKay Municipal Managers, a municipal bond team within MacKay Shields LLC, providing an attractive investment vehicle for tax-conscious investors.

Cyborg Score Rationale

The fund commenced investment operations in February 2022, establishing a four-year track record. The fund maintains meaningful assets under management and offers a tax-advantaged income strategy with diversification across municipal bonds. However, as a closed-end fund, it trades at variable discounts/premiums to NAV, introducing timing and valuation risks.

Top Insights

  • Current yield of 6.9% with 8.17% dividend yield based on recent market pricing, attractive for tax-exempt income seekers
  • Commenced operations in February 2022, providing approximately four years of operating history as of June 2026
  • Utilizes unique swap opportunities and diversification via hybrid muni bond and fund-of-funds approach, differentiating from single-strategy competitors
  • Fund structure allows investors to purchase a diversified fund and potentially generate additional return through changes in the closed-end fund's discount/premium to NAV

Named Competitors

  • BlackRock MuniYield Quality Fund — Municipal bond closed-end fund focused on investment-grade quality
  • Western Asset Managed Municipals Fund — Diversified municipal bond closed-end fund
  • RiverNorth Managed Duration Municipal Income Fund — First iteration of RiverNorth's managed duration municipal strategy

Recent Developments

  • (February 2022) Fund commenced investment operations
  • (March 2024) NAV per share reported at $17.42, with market price at discount to NAV

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