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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

811-23166

(Investment Company Act File Number)

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

 

360 S. Rosemary Avenue, Suite 1420

West Palm Beach, FL 33401

(Address of Principal Executive Offices)

 

Marcus L. Collins, Esq.

RiverNorth Capital Management, LLC.

360 S. Rosemary Avenue, Suite 1420

West Palm Beach, FL 33401

 

(Name and Address of Agent for Service)

 

(561) 484-7185

(Registrant’s Telephone Number)

 

Date of Fiscal Year End: June 30

 

Date of Reporting Period: December 31, 2023

 

 

Item 1. Reports to Stockholders.
   
(a)  

 

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Table of Contents

 

Performance Overview 2
Schedule of Investments 6
Statement of Assets and Liabilities 33
Statement of Operations 35
Statements of Changes in Net Assets Attributable to Common Shareholders 36
Statement of Cash Flows 37
Financial Highlights 40
Notes to Financial Statements 43
Dividend Reinvestment Plan 58
Additional Information 60
Consideration and Approval of Advisory and Sub-Advisory Agreements 61

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Performance Overview December 31, 2023 (Unaudited)

 

WHAT IS THE FUND’S INVESTMENT STRATEGY?

 

The RiverNorth/DoubleLine Strategic Opportunity Fund (“the Fund”) seeks to achieve its investment objective by allocating its Managed Assets among the three principal investment strategies described below:

 

Tactical Closed-End Fund Income Strategy: This strategy seeks to (i) generate returns through investments in closed-end funds, special purpose acquisition companies ("SPACs"), exchange-traded funds and business development companies (collectively, the “Underlying Funds”) that invest primarily in income-producing securities, and (ii) derive value from the discount and premium spreads associated with closed-end funds.

 

Opportunistic Income Strategy: This strategy seeks to generate attractive risk-adjusted returns through investments in fixed income instruments and other investments, including agency and non-agency residential mortgage-backed and other asset-backed securities, corporate bonds, municipal bonds, and real estate investment trusts. At least 50% of the Managed Assets allocated to this strategy is invested in mortgage-backed securities.

 

Alternative Credit Strategy: The Fund's alternative credit investments may be made through a combination of: (i) investing in loans to small and mid-sized companies (“SMEs”); (ii) investing in notes or other pass-through obligations issued by an alternative credit platform (or an affiliate) representing the right to receive the principal and interest payments on an alternative credit investment (or fractional portions thereof) originated through the platform (“Pass-Through Notes”); or (iii) purchasing asset-backed securities representing ownership in a pool of alternative credit.

 

RiverNorth Capital Management, LLC (“RiverNorth” or the "Adviser") allocates the Fund’s Managed Assets among three principal strategies. RiverNorth manages the Tactical CEF Income Strategy and the Alternative Credit Strategy, DoubleLine Capital, LP ("DoubleLine") manages the Opportunistic Income Strategy.

 

RiverNorth determines which portion of the Fund’s assets is allocated to each strategy based on market conditions.

 

 

2 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Performance Overview December 31, 2023 (Unaudited)

 

HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK DURING THE PERIOD?

 

PERFORMANCE as of December 31, 2023

 

  Cumulative Annualized
TOTAL RETURN(1)

6

Months

1

Year

3

Years(3)

5

Years(3)

Since

Inception(2)(3)

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. – NAV(4) 6.99% 11.65% -1.69% 1.34% 2.04%
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. – Market(5) 5.44% 11.32% -3.40% 0.99% 0.49%
Bloomberg U.S. Aggregate Bond Index(6) 3.37% 5.53% -3.31% 1.10% 0.80%

 

(1)Total returns assume reinvestment of all distributions.
(2)The Fund commenced operations on September 28, 2016.
(3)Annualized.
(4)Performance returns are net of management fees and other Fund expenses.
(5)Market price is the value at which the Fund trades on an exchange. This market price can be more or less than its NAV.
(6)The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of investment grade fixed-rate debt issues with maturities of at least one year. The index cannot be invested in directly and does not reflect fees and expenses.

 

The total annual expense ratio as a percentage of net assets attributable to common shares as of December 31, 2023 is 2.23% (excluding interest on facility loan payable). Including interest on facility loan payable, the expense ratio is 2.23%.

 

Performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and investment return of an investment will fluctuate so that your shares may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling (844) 569-4750. Total return measures net investment income and capital gain or loss from portfolio investments. All performance shown assumes reinvestment of dividends and capital gains distributions but does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares.

 

 

Semi-Annual Report | December 31, 2023 3

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Performance Overview December 31, 2023 (Unaudited)

 

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT

 

The graph below illustrates the growth of a hypothetical $10,000 investment assuming the purchase of common shares at the closing market price (NYSE: OPP) of $20.00 on September 28, 2016 (commencement of operations) and tracking its progress through December 31, 2023.

 

 

Past performance does not guarantee future results. Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.

 

 

4 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Performance Overview December 31, 2023 (Unaudited)

 

TOP TEN HOLDINGS* as of December 31, 2023

 

  % of Net Assets
U.S. Treasury Bond, 4.75%, 11/15/2053 11.76%
State Street Institutional Trust (7 Day Yield 5.286%) 5.00%
U.S. Treasury Bond 4.50%, 11/15/2033 4.56%
Legacy Mortgage Asset Trust, 8.50%, 11/25/2059 2.84%
Western Asset High Income Opportunity Fund, Inc. 1.71%
PRPM 2022-5 LLC 1.64%
Government National Mortgage Association, 3.50%, 02/20/47 1.59%
Oaktree Specialty Lending Corp. 1.54%
Freddie Mac REMICS, 4.00%-5.79%, 12/15/40 1.50%
COLT 2021-4 Mortgage Loan Trust, 4.14%, 10/25/66 1.38%
  33.52%

 

*Holdings are subject to change and exclude short-term investments.

 

ASSET ALLOCATION as of December 31, 2023^

 

  

^Holdings are subject to change.

Percentages are based on total investments of the Fund and do not include derivatives.

 

 
Semi-Annual Report | December 31, 2023 5

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Shares/Description  Value 
CLOSED-END FUNDS (6.71%)     
 128,670   Barings Global Short Duration High Yield Fund  $1,729,324 
 142,624   First Trust High Yield Opportunities 2027 Term Fund   1,986,752 
 242,919   Invesco Dynamic Credit Opportunity Fund   2,715,835 
 167,522   Nuveen AMT-Free Municipal Credit Income Fund   1,980,110 
 188,705   Nuveen Preferred Income Opportunities Fund   1,275,643 
 24,848   PGIM Global High Yield Fund, Inc.   282,273 
 72,184   PGIM Short Duration High Yield Opportunities Fund   1,082,760 
 981,990   Western Asset High Income Opportunity Fund, Inc.   3,790,482 
TOTAL CLOSED-END FUNDS     
(Cost $15,465,278)   14,843,179 

 

Principal Amount/Description  Rate  Maturity  Value 
BANK LOANS (2.79%)           
$235,772   Air Methods Corp., First Lien - Initial Term Loan(a)  3M US L + 3.50%  04/22/24  $35,563 
 33,777   Air Methods Corporation TLB 1L(a)  6M US L + 0.00%  11/30/28   33,777 
 310,275   American Tire Distributors, Inc., First Lien - Initial Term Loan  3M SOFR + 6.25%  10/08/28   261,174 
 415,000   Applied Systems, Inc., Second Lien - 2021 Term Loan(a)  3M SOFR + 6.75%  09/19/25   418,372 
 188,028   Astra Acquisition Corp., First Lien - Initial Term Loan  3M SOFR + 5.25%  10/22/28   122,610 
 679,837   Astra Acquisition Corp., Second Lien - Initial Term Loan  3M SOFR + 8.88%  10/22/29   329,721 
 95,000   Asurion LLC, Second Lien - New B-3 Term Loan(a)  1M US SOFR + 5.25%  01/31/28   90,804 
 287,355   Atlas Purchaser, Inc., First Lien - Initial Term Loan(a)  3M US L + 3.00%  05/18/28   171,575 
 227,365   Aveanna Healthcare LLC, Second Lien - Initial Term Loan(a)  3M SOFR + 7.00%  12/10/29   169,008 
 134,663   Bausch + Lomb Corp., First Lien (a)  1M SOFR + 4.00%  09/29/28   134,831 
 65,000   Blackhawk Network Holdings, Inc., Second Lien (a)  1M US SOFR + 7.00%  06/15/26   64,350 
 240,000   Boxer Parent Company Inc. TL 1L  3M SOFR + 4.25%  12/02/28   242,070 
 63,672   Bright Bidco BV, First Lien (a)  3M SOFR + 9.00%  10/31/27   22,657 
 245,000   Cengage Learning, Inc., First Lien - B Term Loan  3M US L + 5.00%  06/29/26   246,087 

 

See Notes to Financial Statements.

 

6 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
BANK LOANS (continued)           
$530,000   Constant Contact, Inc., Second Lien - Initial Term Loan(a)  3M SOFR + 7.50%  02/12/29  $463,750 
 206,357   Cyxtera DC Holdings, Inc., First Lien - Initial Term Loan(a)  PRIME + 2.00%  05/01/24   131,297 
 295,000   DCert Buyer, Inc., Second Lien - First Amendment Refinancing Term Loan(a)  1M US SOFR + 7.00%  02/19/29   269,925 
 250,000   DG Investment Intermediate Holdings 2, Inc., Second Lien - Initial Term Loan(a)  1M US SOFR + 6.75%  03/30/29   226,666 
 175,981   Gulf Finance, LLC TL 1L  1M US SOFR + 6.75%  08/25/26   176,420 
 33,872   Lealand Finance Company B.V., First Lien - Take-Back Term Loan(a)  3M US L + 1.00%  06/30/25   14,170 
 2,433   Lealand Finance Company B.V., First Lien - Make-Whole Term Loan(a)  1M US SOFR + 3.00%  06/28/24   1,691 
 250,000   LifePoint Health, Inc., First Lien (a)  3M CME TERM + 5.50%  11/16/28   249,463 
 152,625   LSF9 ATLANTIS HOLDINGS, LLC, First Lien - B Term Loan  3M SOFR + 7.25%  03/29/29   149,382 
 314,914   Minotaur Acquisition, Inc., First Lien - B Term Loan(a)  1M US SOFR + 4.75%  03/30/26   315,391 
 94,763   Olympus Water US Holding Corp, First Lien, First Lien  3M SOFR + 5.00%  11/08/28   95,434 
 138,934   Riverbed Technology LLC, TL  6M CME TERM + 2.50%  07/01/28   95,865 
 248,230   Think & Learn Private, Ltd., First Lien - B Term Loan  PRIME + 7.00%  11/05/26   90,811 
 453,944   Travelport Finance Luxembourg SARL 1L, 2021, First Lien - Initial (Priority) Term Loan(a)  3M SOFR + 7.26%  02/28/25   440,578 
 550,000   UKG, Inc. TL 2L  3M SOFR + 5.25%  05/03/27   552,112 
 188,588   Viad Corp, First Lien - Initial Term Loan(a)  3M US L + 5.00%  07/30/28   188,352 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 7

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
BANK LOANS (continued)           
$351,885   WaterBridge Midstream Operating LLC, First Lien - Initial Term Loan(a)  3M SOFR + 5.75%  06/22/26  $352,854 
TOTAL BANK LOANS           
(Cost $7,299,596)         6,156,760 

 

Principal Amount/Description  Rate  Maturity  Value 
SMALL BUSINESS LOANS (28.28%)             
 70,598,709   Square(b)(c)   4.91%  01/28/24-06/26/25   62,597,537 
TOTAL SMALL BUSINESS LOANS             
(Cost $67,440,467)           62,597,537 

 

Shares/Description  Value 
COMMON STOCKS (0.49%)     
 6,047   Envision Healthcare Corp.(d)   51,400 
 38,618   PERSHING SQUARE TONTINE HOLDIN(b)(d)   0 
 3,705   Riverbed Tech Class B-1 Partnership Units(d)   482 
 273,325   Saba Software, Inc.(d)   1,035,902 
TOTAL COMMON STOCKS     
(Cost $1,096,088)   1,087,784 

 

Shares/Description  Value 
SPECIAL PURPOSE ACQUISITION COMPANIES (0.18%)     
 1,789   Bright Bidco Equity (Dr)(d)   1,163 
 4,212   Intelsat SA/Luxembourg(d)   121,095 
 27,066   Screaming Eagle Acquisition Corp.(d)   286,899 
TOTAL SPECIAL PURPOSE ACQUISITION COMPANIES     
(Cost $497,423)   409,157 

 

Shares/Description      Value 
PREFERRED STOCKS (1.46%)     
 96,907   Crescent Capital BDC, Inc., 5.00%, 05/25/2026   2,267,624 
 39,726   XAI Octagon Floating Rate Alternative Income Term Trust, Series 2026, 6.50%, 03/31/2026   968,516 
TOTAL PREFERRED STOCKS     
(Cost $3,429,047)   3,236,140 

 

See Notes to Financial Statements.

 

8 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
COLLATERALIZED LOAN OBLIGATIONS (8.52%)           
$500,000   Apidos CLO XXIV(a)(e)  3M CME TERM SOFR + 6.06%  10/20/30  $472,972 
 500,000   Bain Capital Credit Clo 2019-3, Ltd.(a)(e)  3M CME TERM SOFR + 7.36%  10/21/34   468,731 
 500,000   Bain Capital Credit Clo 2019-4, Ltd.(a)(e)  3M SOFR + 3.63%  04/23/35   483,396 
 500,000   Bain Capital Credit CLO 2021-2, Ltd.(a)(e)  3M CME TERM SOFR + 3.41%  07/16/34   487,363 
 500,000   Bain Capital Credit CLO 2022-3, Ltd.(a)(e)  3M SOFR + 7.35%  07/17/35   477,541 
 500,000   Barings CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.08%  10/15/30   473,746 
 500,000   Canyon Capital CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.01%  07/15/31   467,091 
 500,000   Carlyle Global Market Strategies CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.61%  05/15/31   463,881 
 500,000   Carlyle Global Market Strategies CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.76%  10/15/30   467,977 
 1,000,000   Carlyle US CLO 2020-2, Ltd.(a)(e)  3M CME TERM SOFR + 6.96%  01/25/35   985,295 
 500,000   Carlyle US CLO 2021-1, Ltd.(a)(e)  3M CME TERM SOFR + 6.26%  04/15/34   491,584 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 9

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
COLLATERALIZED LOAN OBLIGATIONS (continued)           
$500,000   Carlyle US CLO 2023-3, Ltd.(a)(e)  3M CME TERM SOFR + 5.50%  10/15/36  $504,784 
 500,000   Chenango Park CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.06%  04/15/30   467,327 
 500,000   Fillmore Park CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.66%  07/15/30   484,693 
 1,000,000   Galaxy XIX CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.79%  07/24/30   943,471 
 500,000   Goldentree Loan Management US Clo 10, Ltd.(a)(e)  3M CME TERM SOFR + 6.46%  07/20/34   486,308 
 500,000   Goldentree Loan Management US CLO 3, Ltd.(a)(e)  3M CME TERM SOFR + 3.11%  04/20/30   493,562 
 500,000   Marble Point CLO XII, Ltd.(a)(e)  3M CME TERM SOFR + 3.26%  07/16/31   448,484 
 500,000   Milos CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.41%  10/20/30   479,026 
 500,000   Myers Park CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.76%  10/20/30   473,540 
 500,000   Neuberger Berman Loan Advisers CLO 37, Ltd.(a)(e)  3M CME TERM SOFR + 6.01%  07/20/31   492,605 

 

See Notes to Financial Statements.

 

10 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
COLLATERALIZED LOAN OBLIGATIONS (continued)           
$500,000   Neuberger Berman Loan Advisers CLO 42, Ltd.(a)(e)  3M CME TERM SOFR + 6.21%  07/16/35  $487,951 
 500,000   Neuberger Berman Loan Advisers Clo 44, Ltd.(a)(e)  3M CME TERM SOFR + 6.26%  10/16/34   490,805 
 500,000   Ocean Trails CLO V(a)(e)  3M CME TERM SOFR + 3.71%  10/13/31   440,361 
 500,000   REESE PARK CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.79%  10/15/34   489,128 
 500,000   Sound Point CLO XXVI, Ltd.(a)(e)  3M CME TERM SOFR + 7.12%  07/20/34   449,165 
 500,000   Sound Point CLO XXXII, Ltd.(a)(e)  3M CME TERM SOFR + 6.96%  10/25/34   410,849 
 500,000   THL Credit Wind River 2017-3 CLO, Ltd.(a)(e)  3M US L + 7.08%  04/15/35   466,570 
 1,000,000   THL Credit Wind River 2019-1 CLO, Ltd.(a)(e)  3M CME TERM SOFR + 3.71%  07/20/34   933,125 
 500,000   THL Credit Wind River CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.01%  07/15/30   457,249 
 500,000   Vibrant Clo III, Ltd.(a)(e)  3M CME TERM SOFR + 3.76%  10/20/31   470,403 
 500,000   Voya CLO 2019-1, Ltd.(a)(e)  3M CME TERM SOFR + 6.38%  04/15/31   477,121 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 11

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
COLLATERALIZED LOAN OBLIGATIONS (continued)           
$1,000,000   Voya CLO 2022-3, Ltd.(a)(e)  3M CME TERM SOFR + 4.50%  10/20/36  $988,848 
 500,000   Voya CLO, Ltd.(a)(e)  3M CME TERM SOFR + 6.21%  07/14/31   370,658 
 500,000   Voya CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.51%  07/15/31   453,285 
 500,000   Webster Park CLO, Ltd.(a)(e)  3M CME TERM SOFR + 5.76%  07/20/30   469,732 
TOTAL COLLATERALIZED LOAN OBLIGATIONS           
(Cost $19,549,847)         18,868,627 

 

Shares/Description  Value 
RIGHTS (0.01%)     
 36,781   Arisz Acquisition Corp., Strike Price $11.50, Expires 11/16/2026   7,724 
 35,646   Deep Medicine Acquisition Corp., Strike Price $11.50, Expires 01/29/2024   10,694 
 62,828   Globalink Investment, Inc., Strike Price $11.50, Expires 04/15/2024   1,885 
 63,000   Mountain Crest Acquisition Corp. V, Strike Price $0.01, Expires 12/31/2049   6,300 
TOTAL RIGHTS     
(Cost $32,787)   26,603 

 

Shares/Description  Value 
WARRANTS (0.03%)    
 36,143   Achari Ventures Holdings Corp. I, Strike Price $11.50, Expires 08/05/2026   542 
 27,203   Aeries Technology, Inc., Strike Price $11.50, Expires 10/20/2026   1,428 
 14,921   AltEnergy Acquisition Corp., Strike Price $11.50, Expires 11/02/2028   552 
 36,781   Arisz Acquisition Corp., Strike Price $11.50, Expires 11/16/2026   3,682 
 104,172   Beneficient, Strike Price $11.50, Expires 03/14/2028   1,042 

 

See Notes to Financial Statements.

 

12 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Shares/Description  Value 
WARRANTS (continued)     
 7,421   Blockchain Coinvestors Acquisition Corp. I, Strike Price $11.50, Expires 11/01/2028  $371 
 54,941   Blue Ocean Acquisition Corp., Strike Price $11.50, Expires 10/21/2028   1,099 
 29,843   Cactus Acquisition Corp. 1, Ltd., Strike Price $11.50, Expires 10/29/2026   895 
 11,642   Cardio Diagnostics Holdings, Inc., Strike Price $11.50, Expires 12/01/2026   2,025 
 24,051   Digital Health Acquisition Corp., Strike Price $11.50, Expires 11/04/2028   637 
 19,184   Direct Selling Acquisition Corp., Strike Price $11.50, Expires 09/30/2028   192 
 51,583   Euda Health Holdings, Ltd., Strike Price $11.50, Expires 09/24/2026   7,149 
 16,078   Everest Consolidator Acquisition Corp., Strike Price $11.50, Expires 07/19/2028   2,090 
 6,010   ExcelFin Acquisition Corp., Strike Price $11.50, Expires 10/21/2026   121 
 30,063   Finnovate Acquisition Corp., Strike Price $11.50, Expires 09/30/2026   210 
 46,043   GigCapital5, Inc., Strike Price $11.50, Expires 12/31/2028   299 
 62,828   Globalink Investment, Inc., Strike Price $11.50, Expires 12/03/2026   207 
 48,475   Hub Cyber Security, Ltd., Strike Price $11.50, Expires 02/27/2028   679 
 13,554   Infrared Cameras Holdings, Inc., Strike Price $11.50, Expires 09/01/2027   623 
 36,627   Integrated Rail and Resources Acquisition Corp., Strike Price $11.50, Expires 11/12/2026   2,568 
 25,890   LAMF Global Ventures Corp. I, Strike Price $11.50, Expires 11/11/2026   647 
 6,063   Learn CW Investment Corp., Strike Price $11.50, Expires 12/31/2028   121 
 12,037   Newcourt Acquisition Corp., Strike Price $11.50, Expires 04/12/2028   193 
 40,085   Nvni Group, Ltd., Strike Price $11.50, Expires 11/01/2028   1,463 
 10,453   Onyx Acquisition Co. I, Strike Price $11.50, Expires 11/30/2028   209 
 6,744   Phoenix Biotech Acquisition Corp., Strike Price $11.50, Expires 09/01/2026   169 
 23,875   Project Energy Reimagined Acquisition Corp., Strike Price $11.50, Expires 12/31/2028   267 
 14,614   Roadzen, Inc., Strike Price $11.50, Expires 11/30/2028   1,022 
 1,188   Roth CH Acquisition Co., Strike Price $11.50, Expires 10/29/2028   30 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 13

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Shares/Description      Value 
WARRANTS (continued)     
 29,444   Roth CH Acquisition V Co., Strike Price $11.50, Expires  12/10/2026  $1,178 
 9,022   Screaming Eagle Acquisition Corp., Strike Price $11.50, Expires 12/15/2027   4,061 
 4,008   Semper Paratus Acquisition Corp., Strike Price $11.50, Expires 11/04/2026   160 
 52,112   Sizzle Acquisition Corp., Strike Price $11.50, Expires 03/12/2026   4,691 
 63,913   SMX Security Matters PLC, Strike Price $253.00, Expires 03/07/2028   607 
 40,226   Southland Holdings, Inc., Strike Price $11.50, Expires 09/01/2026   16,891 
 43,341   Syntec Optics Holdings, Inc., Strike Price $11.50, Expires 11/08/2026   4,807 
 32,164   TG Venture Acquisition Corp., Strike Price $11.50, Expires 08/15/2028   335 
 5,889   TLGY Acquisition Corp., Strike Price $11.50, Expires 01/14/2028   91 
 24,725   Tristar Acquisition I Corp., Strike Price $11.50, Expires 12/31/2028   556 
 29,378   Vast Solar Pty, Ltd., Strike Price $11.50, Expires 06/29/2028   2,644 
 32,389   Volato Group, Inc., Strike Price $11.50, Expires 12/03/2028   3,598 
 8,911   Zoomcar Holdings, Inc., Strike Price $11.50, Expires 07/01/2028   713 
TOTAL WARRANTS     
(Cost $268,734)   70,864 

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. CORPORATE BONDS (14.97%)           
Basic Materials (0.21%)             
$85,000   ASP Unifrax Holdings, Inc.(e)   7.50%  09/30/29   43,353 
 100,000   Illuminate Buyer LLC / Illuminate Holdings IV, Inc.(e)   9.00%  07/01/28   95,740 
 400,000   Sasol Financing USA LLC   5.50%  03/18/31   337,343 
                 476,436 
Communications (0.18%)             
 210,000   Embarq Corp Eq   8.00%  06/01/36   131,507 
 225,000   McGraw-Hill Education, Inc.(e)   5.75%  08/01/28   217,186 
 65,000   Newfold Digital Holdings Group, Inc.(e)   6.00%  02/15/29   49,175 
                 397,868 
Consumer, Cyclical (0.32%)             
 160,000   Carnival Corp.(e)   7.63%  03/01/26   162,993 
 105,000   Dealer Tire LLC / DT Issuer LLC(e)   8.00%  02/01/28   104,072 

 

See Notes to Financial Statements.

 

14 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
Consumer, Cyclical (continued)             
$70,000   Premier Entertainment Sub LLC / Premier Entertainment Finance Corp.(e)   5.88%  09/01/31  $54,686 
 75,000   SWF Escrow Issuer Corp.(e)   6.50%  10/01/29   53,982 
 50,000   TKC Holdings, Inc.(e)   10.50%  05/15/29   45,301 
 160,000   Viking Cruises, Ltd.(e)   9.13%  07/15/31   170,606 
 405,000   Wheel Pros, Inc.(e)   6.50%  05/15/29   124,031 
                 715,671 
Consumer, Non-cyclical (0.15%)             
 270,000   Air Methods Corp.(e)(f)   8.00%  05/15/25   4,388 
 200,000   JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc.(g)   4.38%  02/02/52   149,086 
 102,656   Pyxus Holdings, Inc.(e)   8.50%  12/31/27   65,700 
 50,000   Radiology Partners, Inc.(e)   9.25%  02/01/28   25,697 
 110,000   Triton Water Holdings, Inc.(e)   6.25%  04/01/29   95,939 
                 340,810 
Energy (0.25%)             
 200,000   Kosmos Energy, Ltd.(g)   7.50%  03/01/28   182,295 
 135,000   NGL Energy Operating LLC / NGL Energy Finance Corp.(e)   7.50%  02/01/26   136,458 
 250,000   SierraCol Energy Andina LLC(e)   6.00%  06/15/28   210,610 
 20,000   Venture Global LNG, Inc.(e)   8.38%  06/01/31   20,020 
                 549,383 
Financial (13.69%)             
 1,360,000   Bain Capital Specialty Finance, Inc.   2.55%  10/13/26   1,228,844 
 130,000   BlackRock TCP Capital Corp.   3.90%  08/23/24   127,963 
 2,043,894   Blackstone Private Credit Fund   2.63%  12/15/26   1,852,553 
 800,000   Blackstone Private Credit Fund   3.25%  03/15/27   734,448 
 1,563,029   Blackstone Secured Lending Fund   2.85%  09/30/28   1,354,883 
 1,407,561   Blue Owl Capital Corp.   2.88%  06/11/28   1,236,947 
 610,631   Blue Owl Capital Corp.   3.40%  07/15/26   568,071 
 3,000,000   Blue Owl Capital Corp.   3.75%  07/22/25   2,874,810 
 222,000   Blue Owl Capital Corp. II(e)   4.63%  11/26/24   219,813 
 1,500,000   Blue Owl Capital Corp. III   3.13%  04/13/27   1,326,510 
 1,265,423   Blue Owl Credit Income Corp.   4.70%  02/08/27   1,196,520 
 1,000,000   Blue Owl Credit Income Corp.   5.50%  03/21/25   986,575 
 2,299,520   Blue Owl Credit Income Corp.   7.75%  09/16/27   2,372,920 
 3,000,000   Blue Owl Technology Finance Corp.(e)   6.75%  06/30/25   2,956,551 
 1,000,000   Franklin BSP Lending Corp.(e)   4.85%  12/15/24   973,410 
 1,045,000   FS KKR Capital Corp.   4.13%  02/01/25   1,019,333 
 2,700,000   Golub Capital BDC, Inc.   2.05%  02/15/27   2,372,371 
 562,873   Golub Capital BDC, Inc.   3.38%  04/15/24   558,573 
 3,300,000   Oaktree Specialty Lending Corp.   7.10%  02/15/29   3,406,901 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 15

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
Financial (continued)             
$3,109,106   PennantPark Floating Rate Capital, Ltd.   4.25%  04/01/26  $2,936,174 
                 30,304,170 
Industrial (0.07%)             
 105,000   Artera Services LLC(e)   9.03%  12/04/25   99,427 
 20,000   Trident TPI Holdings, Inc.(e)   12.75%  12/31/28   21,425 
 50,000   Triumph Group, Inc.   7.75%  08/15/25   49,877 
                 170,729 
Technology (0.08%)             
 270,000   Castle US Holding Corp.(e)   9.50%  02/15/28   140,663 
 45,000   Virtusa Corp.(e)   7.13%  12/15/28   38,661 
                 179,324 
TOTAL U.S. CORPORATE BONDS             
(Cost $33,426,957)           33,134,391 

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES (33.56%)        
 1,030,022   Alternative Loan Trust  6.50%  09/25/36   553,536 
 1,757,564   Alternative Loan Trust  5.75%  03/25/37   968,224 
 2,148,727   Alternative Loan Trust  6.00%  07/25/37   1,061,978 
 1,682,980   Alternative Loan Trust  6.25%  08/25/37   834,648 
 1,460,596   Alternative Loan Trust  5.50%  12/25/35   1,058,797 
 523,259   Alternative Loan Trust  5.50%  11/25/35   307,917 
 126,515   Alternative Loan Trust(a)  3.94%  12/25/35   114,941 
 1,464,371   Banc of America Funding Trust(a)  2.99%  05/20/36   1,166,106 
 739,882   Banc of America Mortgage Trust  6.00%  09/25/37   600,177 
 778,539   Bear Stearns ALT-A Trust(a)  4.28%  01/25/36   701,388 
 666,199   Bear Stearns ARM Trust(a)  3.91%  07/25/36   568,028 
 2,520,845   Chase Mortgage Finance Trust Series(a)  1M CME TERM SOFR + 0.71%  06/25/37   884,009 
 2,278,882   ChaseFlex Trust Series 2007-1  6.50%  02/25/37   796,298 
 1,152,768   CHL Mortgage Pass-Through Trust(a)  3.76%  03/25/37   926,392 
 2,012,736   CHL Mortgage Pass-Through Trust  5.75%  07/25/37   985,536 
 1,223,007   CHL Mortgage Pass-Through Trust(a)  1M CME TERM SOFR + 0.71%  03/25/35   1,056,430 
 78,287   Citigroup Mortgage Loan Trust(a)  4.15%  04/25/37   78,093 
 1,003,464   Citigroup Mortgage Loan Trust, Inc.(a)  4.86%  10/25/35   820,618 
 4,500,000   COLT 2021-4 Mortgage Loan Trust(a)(e)  4.14%  10/25/66   3,057,461 

 

See Notes to Financial Statements.

 

16 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES (continued)        
$1,000,000   Connecticut Avenue Securities Trust 2021-R01(a)(e)  30D US SOFR + 6.00%  10/25/41  $1,026,474 
 2,000,000   Connecticut Avenue Securities Trust 2022-R02(a)(e)  30D US SOFR + 7.65%  01/25/27   2,116,314 
 1,000,000   Connecticut Avenue Securities Trust 2022-R03(a)(e)  30D US SOFR + 9.85%  03/25/42   1,130,848 
 1,500,000   Connecticut Avenue Securities Trust 2023-R06(a)(e)  30D US SOFR + 3.90%  07/25/43   1,554,375 
 610,678   CSFB Mortgage-Backed Pass-Through Certificates  5.50%  10/25/35   281,020 
 1,280,195   CSMC Mortgage-Backed Trust  6.00%  02/25/37   722,037 
 1,511,197   CSMC Mortgage-Backed Trust  6.75%  08/25/36   804,265 
 495,353   Fannie Mae REMICS(a)  7.62% - 1M US L  11/25/42   318,014 
 1,585,407   Fannie Mae REMICS(h)  0.00%  07/25/43   954,043 
 3,601,103   Fannie Mae REMICS(a)(i)  5.94% - 30D US SOFR  07/25/49   421,886 
 1,096,799   Fannie Mae REMICS(a)(i)  6.39% - 30D US SOFR  12/25/41   127,729 
 1,287,993   Fannie Mae REMICS(a)(i)  5.79% - 30D US SOFR  10/25/41   115,737 
 1,311,715   Fannie Mae REMICS(a)(i)  6.34% - 30D US SOFR  03/25/42   172,674 
 528,122   Federal Home Loan Mortgage Corp. REMICS(a)  4.05% - 1M US L  01/15/33   464,573 
 172,677   First Horizon Alternative Mortgage Securities Trust(a)  4.28%  10/25/35   143,469 
 3,460,173   Freddie Mac REMICS  4.00%  12/15/40   3,320,482 
 2,345,868   Freddie Mac REMICS(a)(i)  5.79% - 30D US SOFR  12/15/41   224,011 
 11,038,275   Freddie Mac REMICS(i)  2.00%  11/25/50   1,213,410 
 3,119,261   Freddie Mac REMICS(a)(i)  5.99% - 30D US SOFR  08/25/50   422,354 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 17

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES (continued)        
$4,807,517   Freddie Mac REMICS(i)  3.00%  09/25/51  $791,089 
 2,000,000   Freddie Mac STACR REMIC Trust 2020-DNA6(a)(e)  30D US SOFR + 5.65%  12/25/50   2,164,583 
 1,700,000   Freddie Mac STACR REMIC Trust 2021-DNA1(a)(e)  30D US SOFR + 4.75%  01/25/51   1,740,933 
 1,250,000   Freddie Mac STACR REMIC Trust 2022-DNA1(a)(e)  30D US SOFR + 7.10%  01/25/42   1,295,951 
 2,000,000   Freddie Mac Structured Agency Credit Risk Debt Notes(a)(e)  30D US SOFR + 6.00%  08/25/33   2,242,964 
 6,047,164   Government National Mortgage Association(a)(i)  0.55%  09/20/66   244,648 
 9,672,823   Government National Mortgage Association(a)(i)  1.10%  11/20/71   582,253 
 7,139,177   Government National Mortgage Association(a)(i)  3.70% - 30D US SOFR  09/20/51   217,065 
 12,800,563   Government National Mortgage Association(a)(i)  3M US L + 2.44%  06/20/51   174,583 
 3,324,500   Government National Mortgage Association(a)(i)  6.19% - 1M CME TERM SOFR  01/20/51   467,795 
 5,940,581   Government National Mortgage Association(a)(i)  3.75% - 1M US L  11/20/50   174,458 
 3,129,161   Government National Mortgage Association(a)(i)  6.19% - 1M CME TERM SOFR  10/20/50   449,037 
 5,434,781   Government National Mortgage Association(a)(i)  3.75% - 1M US L  10/20/50   230,114 
 6,413,895   Government National Mortgage Association(a)(i)  3.20% - 30D US SOFR  12/20/51   142,351 
 3,357,663   Government National Mortgage Association(a)(i)  6.19% - 1M CME TERM SOFR  09/20/50   439,741 
 5,671,118   Government National Mortgage Association(a)(i)  0.98%  12/16/62   395,302 

 

See Notes to Financial Statements.

 

18 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES (continued)        
$6,850,396   Government National Mortgage Association(a)(i)  0.09%  09/20/70  $442,509 
 5,421,389   Government National Mortgage Association(a)(i)  0.02%  11/20/70   390,170 
 6,978,986   Government National Mortgage Association(a)(i)  0.16%  06/20/70   471,560 
 7,329,009   Government National Mortgage Association(a)(i)  0.04%  11/20/69   287,176 
 3,825,673   Government National Mortgage Association  3.50%  02/20/47   3,521,012 
 3,260,311   Government National Mortgage Association(a)(i)  0.68%  09/16/58   107,053 
 6,996,292   Government National Mortgage Association(a)(i)  5.26% - 1M US SOFR  07/20/44   580,382 
 14,750,240   Government National Mortgage Association(a)(i)  2.65% - 30D US SOFR  01/20/52   188,095 
 1,700,000   Imperial Fund Mortgage Trust 2021-NQM3(a)(e)  4.14%  11/25/56   1,143,087 
 6,449,932   Legacy Mortgage Asset Trust(e)(j)  8.50%  11/25/59   6,289,216 
 1,395,279   Luminent Mortgage Trust(a)  1M CME TERM SOFR + 0.51%  05/25/36   1,074,927 
 706,986   Luminent Mortgage Trust(a)  1M CME TERM SOFR + 0.53%  05/25/36   617,411 
 1,685,616   Nomura Asset Acceptance Corp. Alternative Loan Trust(j)  5.69%  08/25/35   784,197 
 7,152,755   Nomura Asset Acceptance Corp. Alternative Loan Trust(a)  1M CME TERM SOFR + 0.65%  02/25/36   891,651 
 1,354,041   PR Mortgage Loan Trust(a)(e)  5.85%  10/25/49   1,247,734 
 1,252,178   RALI Series Trust(a)  6.38%  09/25/37   1,056,431 
 1,996,914   Residential Asset Securitization Trust  5.75%  02/25/36   777,475 
 1,764,723   Residential Asset Securitization Trust  6.00%  05/25/37   920,293 
 3,927,945   Residential Asset Securitization Trust 2005-A12  5.50%  11/25/35   2,283,134 
 1,232,259   RFMSI Trust  6.00%  09/25/36   912,998 
 637,184   RFMSI Trust(a)  4.74%  06/25/35   429,728 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 19

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES (continued)         
$1,936,000   Spruce Hill Mortgage Loan Trust 2020-SH1(a)(e)   4.68%  01/28/50  $1,639,992 
 312,440   Structured Adjustable Rate Mortgage Loan Trust(a)   4.38%  12/25/35   279,582 
 1,332,800   Structured Adjustable Rate Mortgage Loan Trust(a)   4.98%  09/25/37   1,142,061 
 1,000,000   Verus Securitization Trust 2021-7(a)(e)   4.19%  10/25/66   677,882 
 780,046   WaMu Mortgage Pass-Through Certificates Trust(a)   4.55%  08/25/36   668,771 
 928,882   WaMu Mortgage Pass-Through Certificates Trust(a)   3.76%  03/25/37   813,288 
 903,758   WaMu Mortgage Pass-Through Certificates Trust(a)   4.45%  08/25/46   801,298 
TOTAL U.S. GOVERNMENT / AGENCY MORTGAGE BACKED SECURITIES    
(Cost $98,157,120)       74,266,272 

 

Principal Amount/Description  Rate  Maturity  Value 
     U.S. GOVERNMENT BONDS AND NOTES (16.31%)             
 23,200,000   U.S. Treasury Bond   4.75%  11/15/53   26,022,062 
 9,600,000   U.S. Treasury Bond   4.50%  11/15/33   10,081,500 
     TOTAL U.S. GOVERNMENT BONDS AND NOTES             
     (Cost $33,251,573)           36,103,562 

 

Principal Amount/Description  Rate  Maturity  Value 
FOREIGN CORPORATE BONDS (5.46%)           
Basic Materials (0.98%)           
 200,000   ABM Investama Tbk PT(e)  9.50%  08/05/26   191,576 
 200,000   Aris Mining Corp.(g)  6.88%  08/09/26   173,897 
 200,000   Aris Mining Corp.(g)  6.88%  08/09/26   173,897 
 300,000   Braskem Idesa SAPI(e)  6.99%  02/20/32   175,901 
 200,000   CAP SA(g)  3.90%  04/27/31   155,800 
 300,000   IAMGOLD Corp.(g)  5.75%  10/15/28   258,409 
 400,000   OCP SA(g)  5.13%  06/23/51   304,671 
 400,000   Unigel Luxembourg SA(f)(g)  8.75%  10/01/26   110,004 
 400,000   UPL Corp., Ltd.(a)(k)  5Y US TI + 3.87%  12/31/99   304,000 
 450,000   Vedanta Resources, Ltd.(g)  6.13%  08/09/24   299,657 
               2,147,812 
Communications (0.28%)           
 200,000   Alibaba Group Holding, Ltd.  3.25%  02/09/61   125,936 

 

See Notes to Financial Statements.

 

20 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
Communications (continued)             
$300,000   Alpha Holdings Escrow Shares(b)   0.00%  12/31/49  $ 
 300,000   Alpha Holdings Escrow Shares(b)   0.00%  12/31/49    
 200,000   CT Trust(g)   5.13%  02/03/32   175,011 
 435,000   Intelsat Escrow Shares(b)   0.00%  12/31/49    
 200,000   Millicom International Cellular SA(g)   4.45%  04/27/31   166,501 
 350,000   Oi SA(f)   10.00%  07/27/25   17,500 
 8,681   Oi SA(e)(l)   14.00%  09/07/24   8,681 
 23,997   Oi SA(e)(l)   14.00%  09/07/24   23,997 
 400,000   VTR Finance NV(g)   6.38%  07/15/28   104,724 
                 622,350 
Consumer, Non-cyclical (0.86%)             
 177,500   Adani International Container Terminal Pvt, Ltd.(g)   3.00%  02/16/31   145,703 
 400,000   Adani Ports & Special Economic Zone, Ltd.(g)   5.00%  08/02/41   295,862 
 450,000   BRF SA(g)   5.75%  09/21/50   336,665 
 150,000   Camposol SA(e)   6.00%  02/03/27   104,559 
 150,000   Camposol SA(g)   6.00%  02/03/27   104,559 
 200,000   Coruripe Netherlands BV(g)   10.00%  02/10/27   153,750 
 175,000   Endo Luxembourg Finance Co. I SARL / Endo US, Inc.(e)(f)   6.13%  04/01/29   112,161 
 450,000   Frigorifico Concepcion SA(e)   7.70%  07/21/28   381,385 
 105,000   Kronos Acquisition Holdings, Inc. / KIK Custom Products, Inc.(e)   7.00%  12/31/27   100,389 
 200,000   MARB BondCo PLC(g)   3.95%  01/29/31   162,585 
                 1,897,618 
Energy (1.57%)             
 250,000   AI Candelaria Spain SA(e)   5.75%  06/15/33   194,110 
 126,000   AI Candelaria Spain SA(g)   5.75%  06/15/33   97,831 
 400,000   Canacol Energy, Ltd.(g)   5.75%  11/24/28   292,095 
 350,000   Cosan Overseas, Ltd.(k)   8.25%  12/31/49   349,042 
 350,000   Ecopetrol SA   5.88%  05/28/45   276,855 
 200,000   Ecopetrol SA   5.88%  11/02/51   151,547 
 255,000   Gran Tierra Energy, Inc.(e)   9.50%  10/15/29   224,128 
 579,751   MC Brazil Downstream Trading SARL(g)   7.25%  06/30/31   455,070 
 600,000   Petroleos del Peru SA(g)   5.63%  06/19/47   370,185 
 250,000   Petroleos Mexicanos   6.38%  01/23/45   163,174 
 150,000   Petroleos Mexicanos   6.75%  09/21/47   98,336 
 200,000   Thaioil Treasury Center Co., Ltd.(g)   3.75%  06/18/50   141,107 
 188,000   Tullow Oil PLC(e)   10.25%  05/15/26   167,940 
 176,085   UEP Penonome II SA(e)   6.50%  10/01/38   134,321 
 350,000   YPF SA(g)   7.00%  12/15/47   264,767 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 21

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
Energy (continued)           
$100,000   YPF SA(g)  8.50%  06/27/29  $92,714 
          3,473,222 
Financial (0.65%)           
 282,819   Alpha Holding SA de CV(e)(f)  9.00%  02/10/25   4,242 
 200,000   Banco Davivienda SA(a)(e)(k)  10Y US TI + 5.10%  12/31/49   143,250 
 200,000   Banco Davivienda SA(a)(g)(k)  10Y US TI + 5.10%  12/31/99   143,250 
 200,000   Banco GNB Sudameris SA(a)(e)  5Y US TI + 6.66%  04/16/31   167,870 
 150,000   Banco GNB Sudameris SA(a)(g)  5Y US TI + 6.66%  04/16/31   125,903 
 250,000   Banco Mercantil del Norte SA/Grand Cayman(a)(e)(k)  10Y US TI + 5.03%  12/31/49   212,999 
 200,000   Banco Mercantil del Norte SA/Grand Cayman(a)(g)(k)  10Y US TI + 5.03%  12/31/49   170,400 
 200,000   Itau Unibanco Holding SA Island(a)(g)(k)  5Y US TI + 4.63%  12/31/49   176,085 
 140,000   Kawasan Industri Jababeka Tbk PT(e)(j)  7.50%  12/15/27   116,200 
 250,000   Mexarrend SAPI de CV(e)  10.25%  07/24/24   55,688 
 200,000   Operadora de Servicios Mega SA de CV Sofom ER(e)  8.25%  02/11/25   105,250 
 200,000   Ronshine China Holdings, Ltd.(f)  6.75%  08/05/24   4,700 
 250,000   Unifin Financiera SAB de CV(f)(g)(k)  8.88%  12/31/49   1,275 
               1,427,112 
Industrial (0.34%)           
 200,000   Cemex SAB de CV(a)(e)(k)  5Y US TI + 5.16%  12/31/99   213,250 
 200,000   Mexico City Airport Trust(g)  5.50%  07/31/47   172,867 
 400,000   Simpar Europe SA(g)  5.20%  01/26/31   346,930 
               733,047 
Utilities (0.80%)           
 200,000   Adani Electricity Mumbai, Ltd.(g)  3.87%  07/22/31   155,552 
 314,000   Adani Transmission Step-One, Ltd.(g)  4.25%  05/21/36   253,420 
 104,860   Empresa Electrica Cochrane SpA(g)  5.50%  05/14/27   99,481 
 300,000   Empresas Publicas de Medellin ESP(g)  4.38%  02/15/31   245,709 
 400,000   EnfraGen Energia Sur SA / EnfraGen Spain SA / Prime Energia SpA(g)  5.38%  12/30/30   312,853 
 321,840   LLPL Capital Pte, Ltd.(g)  6.88%  02/04/39   310,617 
 450,000   Minejesa Capital BV(g)  5.63%  08/10/37   395,389 
               1,773,021 
TOTAL FOREIGN CORPORATE BONDS           
(Cost $14,535,514)         12,074,182 

 

See Notes to Financial Statements.

 

22 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
FOREIGN GOVERNMENT BONDS AND NOTES, SUPRANATIONALS AND FOREIGN AGENCIES (0.42%)     
Government (0.42%)             
$200,000   Colombia Government International Bond   4.13%  02/22/42  $143,589 
 200,000   Colombia Government International Bond   5.00%  06/15/45   155,873 
 200,000   Colombia Government International Bond   5.20%  05/15/49   156,893 
 200,000   Panama Government International Bond   3.87%  07/23/60   120,285 
 350,000   Republic of South Africa Government International Bond   5.65%  09/27/47   280,858 
 300,000   Ukraine Government International Bond(g)   7.25%  03/15/35   72,951 
                 930,449 
TOTAL FOREIGN GOVERNMENT BONDS AND NOTES, SUPRANATIONALS AND FOREIGN AGENCIES     
(Cost $1,308,388)           930,449 

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (29.06%)        
 1,000,000   ACREC 2021-FL1, Ltd.(a)(e)  1M CME TERM SOFR + 2.76%  09/16/26   955,016 
 28,899   Affirm Asset Securitization Trust 2021-Z1(e)  0.00%  08/15/24   48,200 
 372,000   Alen 2021-ACEN Mortgage Trust(a)(e)  1M CME TERM SOFR + 4.11%  04/15/26   169,977 
 700,000   AMSR 2021-SFR3 Trust(e)  4.90%  10/17/26   606,623 
 1,550,000   AMSR 2021-SFR3 Trust(e)  5.88%  10/17/26   1,339,253 
 538,000   AREIT Trust(a)(e)  30D SOFR + 2.76%  09/16/36   484,036 
 730,000   BAMLL Commercial Mortgage Securities Trust(a)(e)  2.57%  03/15/34   714,563 
 400,000   BAMLL Commercial Mortgage Securities Trust 2018-DSNY(a)(e)  1M CME TERM SOFR + 0.90%  09/15/34   398,090 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 23

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)        
$439,000   Bank of America Merrill Lynch Commercial Mortgage Trust 2016-UBS10(a)  4.99%  05/15/26  $381,813 
 682,000   BBCMS Trust(a)(e)  1M CME TERM SOFR + 3.85%  07/15/37   624,885 
 421,950   BB-UBS Trust(a)(e)  3.68%  06/05/30   337,849 
 498,000   Benchmark 2018-B4 Mortgage Trust(a)(e)  2.91%  07/17/51   324,231 
 459,000   Benchmark 2019-B9 Mortgage Trust(a)  4.97%  01/15/29   344,195 
 546,000   Benchmark 2021-B31 Mortgage Trust(e)  2.25%  11/15/31   197,471 
 315,000   BF Mortgage Trust(a)(e)  1M CME TERM SOFR + 3.05%  12/15/35   161,243 
 1,714,724   Blackbird Capital Aircraft Lease Securitization, Ltd.(e)(j)  5.68%  12/16/41   1,506,843 
 500,000   Blue Stream Issuer LLC(e)  8.90%  05/20/53   470,499 
 321,000   BX Commercial Mortgage Trust(a)(e)  1M SOFR + 2.01%  04/15/34   316,852 
 325,000   BX Trust(a)(e)  4.08%  12/06/41   276,254 
 167,283   Carbon Capital VI Commercial Mortgage Trust(a)(e)  1M CME TERM SOFR + 2.96%  10/15/35   148,436 
 5,000   Carvana Auto Receivables Trust 2021-P2(e)  0.00%  05/10/28   1,171,138 
 1,250,000   Castlelake Aircraft Structured Trust(e)  0.00%  04/15/39   28,125 
 500,000   CIFC Funding 2019-III, Ltd.(a)(e)  3M CME TERM SOFR + 7.06%  10/16/34   502,704 
 500,000   CIFC Funding, Ltd.(a)(e)  3M CME TERM SOFR + 6.79%  07/15/34   504,444 
 138,000   Citigroup Commercial Mortgage Trust(e)  2.85%  02/12/49   55,181 
 475,000   Citigroup Commercial Mortgage Trust(a)(e)  3.50%  12/12/41   317,982 

 

See Notes to Financial Statements.

 

24 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)           
$196,000   Citigroup Commercial Mortgage Trust(a)(e)  4.42%  02/12/48  $164,389 
 320,000   Citigroup Commercial Mortgage Trust 2019-SMRT(a)(e)  4.75%  01/10/36   319,463 
 1,500,000   Cologix Data Centers US Issuer LLC(e)  5.99%  12/28/26   1,251,954 
 878,000   COMM Mortgage Trust(a)(e)  1M US L + 2.18%  09/15/33   587,849 
 416,000   DBJPM 16-C1 Mortgage Trust(a)  3.33%  05/12/49   353,604 
 500,000   Dryden 37 Senior Loan Fund(a)(e)  3M CME TERM SOFR + 5.41%  01/15/31   418,215 
 500,000   Dryden 38 Senior Loan Fund(a)(e)  3M CME TERM SOFR + 5.86%  07/15/30   452,425 
 500,000   Dryden 40 Senior Loan Fund(a)(e)  3M CME TERM SOFR + 6.01%  08/15/31   436,674 
 16,506,949   Fannie Mae-Aces(a)(i)  0.67%  11/01/31   326,595 
 16,466,964   Fannie Mae-Aces(a)(i)  0.61%  02/25/29   235,236 
 15,500,977   Fannie Mae-Aces(a)(i)  0.35%  04/25/29   198,569 
 4,550,020   Fannie Mae-Aces(a)(i)  1.15%  03/25/31   257,553 
 15,835,980   Fannie Mae-Aces(a)(i)  0.87%  07/25/32   697,961 
 4,052,930   Fannie Mae-Aces(a)(i)  1.30%  09/25/30   187,223 
 5,639,192   Fannie Mae-Aces(a)(i)  0.52%  12/25/30   92,876 
 147,233,565   Fannie Mae-Aces(a)(i)  0.16%  07/25/31   658,090 
 33,145,472   Fannie Mae-Aces(a)(i)  0.21%  10/25/29   174,832 
 46,440,000   Fannie Mae-Aces(a)(i)  0.27%  05/25/30   472,620 
 700,000   FirstKey Homes 2020-SFR1 Trust(e)  4.28%  08/19/37   665,064 
 1,700,000   FMC GMSR Issuer Trust(a)(e)  4.36%  07/25/26   1,373,567 
 1,750,000   FMC GMSR Issuer Trust(a)(e)  4.44%  10/25/26   1,409,902 
 546,000   Fontainebleau Miami Beach Trust(a)(e)  3.96%  12/12/36   514,603 
 750,000   Freddie Mac Multifamily Structured Credit Risk(a)(e)  30D US SOFR + 3.75%  01/25/51   720,694 
 267,035   FREMF 2015-KF07 Mortgage Trust(a)(e)  30D US SOFR + 5.06%  02/25/25   264,149 
 266,080   FREMF 2016-KF25 Mortgage Trust(a)(e)  30D US SOFR + 5.11%  10/25/23   267,192 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 25

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)           
$297,731   FREMF 2018-KF56 Mortgage Trust(a)(e)  30D US SOFR + 5.91%  11/25/28  $257,530 
 748,725   FREMF 2019-KF71 Mortgage Trust(a)(e)  30D US SOFR + 6.11%  10/25/29   713,612 
 1,200,000   FRTKL 2021-SFR1(e)  4.11%  09/17/26   1,047,476 
 500,000   FS Rialto 2022-FL5 Issuer LLC(a)(e)  1M CME TERM SOFR + 4.82%  06/19/37   487,175 
 5,760,641   Ginnie Mae Strip(i)  1.40%  09/16/45   432,803 
 5,351,718   Government National Mortgage Association(a)(i)  0.99%  05/16/63   365,414 
 3,468,573   Government National Mortgage Association(a)(i)  0.18%  09/16/53   18,524 
 1,100,000   Great Wolf Trust(a)(e)  1M US L + 3.13%  12/15/36   1,081,090 
 300,000   GS Mortgage Securities Corp. Trust 2018-RIVR(a)(e)  1M CME TERM SOFR + 1.85%  07/15/35   112,722 
 500,000   GS Mortgage Securities Corp. Trust 2021-ARDN(a)(e)  1M CME TERM SOFR + 6.05%  11/15/26   464,734 
 1,078,000   GS Mortgage Securities Trust(a)(e)  4.51%  11/10/47   771,468 
 655,000   GS Mortgage Securities Trust(a)(e)  1M US L + 3.92%  07/15/31   48,160 
 373,000   GS Mortgage Securities Trust 2015-GC28(a)(e)  4.45%  02/10/48   330,384 
 3,680,000   GS Mortgage Securities Trust 2021-GSA3(a)(e)(i)  1.53%  12/15/31   285,954 
 500,000   Highbridge Loan Management 4-2014, Ltd.(a)(e)  3M CME TERM SOFR + 5.81%  01/28/30   472,991 
 500,000   Highbridge Loan Management, Ltd.(a)(e)  3M SOFR + 5.36%  02/05/31   467,225 
 500,000   Hilton USA Trust 2016-SFP(e)  2.83%  11/05/35   401,814 
 300,000   IMT Trust 2017-APTS(a)(e)  3.50%  06/15/24   293,502 
 1,062,000   JP Morgan BB Commercial Mortgage Securities Trust(a)(e)  3.36%  11/18/48   896,754 

 

See Notes to Financial Statements.

 

26 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)       
$632,000   JP Morgan BB Commercial Mortgage Securities Trust(a)(e)  3.80%  02/18/48  $390,621 
 148,000   JP Morgan Chase Commercial Mortgage Securities Trust(a)(e)  4.45%  05/05/32   142,331 
 136,000   JP Morgan Chase Commercial Mortgage Securities Trust(a)(e)  4.45%  05/05/32   131,814 
 130,000   JP Morgan Chase Commercial Mortgage Securities Trust(a)(e)  4.45%  05/05/32   126,396 
 111,000   JP Morgan Chase Commercial Mortgage Securities Trust(a)(e)  4.45%  05/05/32   108,264 
 411,000   JP Morgan Chase Commercial Mortgage Securities Trust(a)(e)  5.53%  02/15/46   162,256 
 109,000   JP Morgan Chase Commercial Mortgage Securities Trust(e)  4.34%  05/05/32   106,600 
 5,583,522   JPMBB Commercial Mortgage Securities Trust(a)(i)  1.00%  09/17/47   16,106 
 7,256,953   JPMBB Commercial Mortgage Securities Trust(a)(e)(i)  0.79%  08/17/46   247 
 372,000   JPMBB Commercial Mortgage Securities Trust 2014-C26(a)(e)  4.01%  12/15/24   302,716 
 1,000,000   KREF 2022-FL3, Ltd.(a)(e)  1M CME TERM SOFR + 2.80%  02/17/39   944,125 
 500,000   LCM Loan Income Fund I Income Note Issuer, Ltd.(a)(e)  3M CME TERM SOFR + 5.86%  07/16/31   378,807 
 500,000   LCM XIV LP(a)(e)  3M CME TERM SOFR + 5.76%  07/20/31   342,005 
 500,000   LCM XVII LP(a)(e)  3M CME TERM SOFR + 6.26%  10/15/31   362,671 
 375,000   LoanCore 2021-CRE5 Issuer, Ltd.(a)(e)  1M CME TERM SOFR + 2.46448%  07/15/36   355,517 
 335,000   LSTAR Commercial Mortgage Trust 2017-5(a)(e)  4.83%  03/10/27   220,965 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 27

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)        
$650,000   Madison Park Funding XXXVIII, Ltd.(a)(e)  3M CME TERM SOFR + 6.26%  07/17/34  $635,678 
 750,000   MetroNet Infrastructure Issuer LLC(e)  8.01%  02/20/28   749,684 
 365,000   MFT Trust 2020-ABC(a)(e)  3.48%  02/10/30   125,579 
 751,000   Morgan Stanley Bank of America Merrill Lynch Trust 2016-C31(a)(e)  3.00%  10/15/26   462,329 
                 
 371,000   Morgan Stanley Bank of America Merrill Lynch Trust 2017-C34(e)  2.70%  10/15/27   228,481 
 372,000   Morgan Stanley Capital I Trust 2018-H4(e)  3.00%  12/15/28   246,664 
 454,000   Morgan Stanley Capital I Trust 2018-L1(a)  4.94%  10/15/28   367,769 
 707,570   New Century Home Equity Loan Trust(a)  1M CME TERM SOFR + 0.47%  05/25/36   696,461 
 1,000,000   Octagon 57, Ltd.(a)(e)  3M CME TERM SOFR + 6.86%  10/15/34   988,219 
 500,000   Octagon Investment Partners 26, Ltd.(a)(e)  3M CME TERM SOFR + 8.35%  07/15/30   369,608 
 500,000   Octagon Investment Partners 29, Ltd.(a)(e)  3M CME TERM SOFR + 7.51%  01/24/33   467,647 
 500,000   Octagon Investment Partners 40, Ltd.(a)(e)  3M CME TERM SOFR + 7.26%  01/20/35   458,867 
 500,000   Octagon Investment Partners 42, Ltd.(a)(e)  3M CME TERM SOFR + 7.01%  07/15/34   490,522 
 500,000   Octagon Investment Partners XVI, Ltd.(a)(e)  3M CME TERM SOFR + 6.01%  07/17/30   450,575 

 

See Notes to Financial Statements.

 

28 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)        
$500,000   Octagon Investment Partners XXI, Ltd.(a)(e)  3M CME TERM SOFR + 7.26%  02/14/31  $480,526 
 500,000   Octagon Investment Partners XXII, Ltd.(a)(e)  3M CME TERM SOFR + 2.16%  01/22/30   498,748 
 500,000   OHA Credit Funding 3, Ltd.(a)(e)  3M CME TERM SOFR + 6.51%  07/02/35   505,107 
 800,000   Pagaya AI Debt Selection Trust 2021-5(e)  0.00%  08/15/29   74,571 
 587,213   PAGAYA AI Debt Trust 2022-2(a)(e)  5.37%  01/15/30   583,706 
 749,994   Pagaya AI Debt Trust 2023-5(e)  9.10%  04/15/31   765,758 
 1,800,000   Progress Residential 2021-SFR8 Trust(e)  4.00%  10/17/26   1,572,218 
 1,800,000   Progress Residential Trust(e)  4.00%  07/17/26   1,595,262 
 3,629,797   PRPM 2022-5 LLC(e)(j)  6.90%  09/27/27   3,637,973 
 500,000   RR 1 LLC(a)(e)  3M CME TERM SOFR + 6.61161%  07/15/35   482,358 
 500,000   RR 6, Ltd.(a)(e)  3M CME TERM SOFR + 6.11%  04/15/36   467,050 
 927,725   SMR 2022-IND Mortgage Trust(a)(e)  1M SOFR + 7.50%  02/15/24   777,970 
 50,000   Sofi Professional Loan Program Trust(e)  0.00%  01/25/48   439,949 
 500,000   Trimaran CAVU, Ltd.(a)(e)  3M CME TERM SOFR + 4.98%  11/26/32   499,881 
 446,000   UBS Commercial Mortgage Trust(a)  4.84%  02/15/28   371,449 
 333,000   UBS-Barclays Commercial Mortgage Trust(a)(e)  4.08%  03/12/46   211,518 
 300,000   UBS-Barclays Commercial Mortgage Trust 2013-C5(a)(e)  4.08%  03/12/46   234,656 
 735,000   Upstart Pass-Through Trust Series 2021-ST8(e)  0.00%  10/20/29   237,125 
 1,000   Upstart Securitization Trust 2021-2  0.00%  06/20/31   51,179 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 29

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Principal Amount/Description  Rate  Maturity  Value 
NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (continued)        
$440,481   VMC Finance LLC(a)(e)  1M CME TERM SOFR + 2.76%  09/15/36  $421,988 
 1,200,000   VOLT XCVI LLC(e)(j)  4.83%  03/27/51   1,055,522 
 10,233,079   Washington Mutural Asset-Backed Certificates WMABS Series 2007-HE2 Trust(a)  1M CME TERM SOFR + 0.44%  02/25/37   2,901,105 
 595,767   WAVE LLC(e)  7.00%  09/15/44   81,937 
 332,000   Wells Fargo Commercial Mortgage Trust(e)  3.12%  03/15/59   240,039 
 500,000   Wells Fargo Commercial Mortgage Trust 2018-C45  4.73%  06/15/28   441,464 
 1,175,593   Willis Engine Structured Trust VI(e)  7.39%  05/15/46   967,539 
TOTAL NON-AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS        
(Cost $76,562,664)      64,262,656 

 

Shares/Description  Value 
SHORT-TERM INVESTMENTS (5.00%)     
 11,070,652   State Street Institutional Trust (7 Day Yield 5.286%)  $11,070,652 
           
TOTAL SHORT-TERM INVESTMENTS     
(Cost $11,070,652)   11,070,652 
      
TOTAL INVESTMENTS (153.25%)     
(Cost $383,392,135)  $339,138,815 
      
Series A Cumulative Perpetual Preferred Shares (-27.11%)   (60,000,000)
Series B Cumulative Perpetual Preferred Shares (-27.11%)   (60,000,000)
Other Assets In Excess Of Liabilities (0.97%)   2,154,536 
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS (100.00%)  $221,293,351 

 

Investment Abbreviations:

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

TI - Treasury Index

 

Reference Rates:

3M US L - 3 Month LIBOR as of December 31, 2023 was 5.59%

6M US L - 6 Month LIBOR as of December 31, 2023 was 5.59%

 

See Notes to Financial Statements.

 

30 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

30D US SOFR - 30 Day SOFR as of December 31, 2023 was 5.34%

1M US SOFR - 1 Month SOFR as of December 31, 2023 was 5.35%

3M US SOFR - 3 Month SOFR as of December 31, 2023 was 5.33%

1M US L - 1 Month LIBOR as of December 31, 2023 was 5.47 %

5Y US TI - 5 Year US Treasury Index as of December 31, 2023 was 3.84%

10Y US TI - 10 Year US Treasury Index as of December 31, 2023 was 3.88%

PRIME - US Prime Rate as of December 31, 2023 was 8.50%

 

(a)Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at December 31, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.
(b)As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. See Note 2 to the financial statements for additional information.
(c)Past-due loan. A loan is deemed past-due at December 31, 2023, if the loan borrower has not made its required payment as of the most recent due date. As of December 31, 2023, $1,766,910 of whole loans were past due, which represents 0.80% of net assets
(d)Non-income producing security.
(e)Security exempt from registration under Rule 144A of the Securities Act of 1933 as amended. Such securities may normally be sold to qualified institutional buyers in transactions exempt from registration. The total value of Rule 144A securities amounts to $109,383,439, which represents 49.43% of net assets as of December 31, 2023.
(f)Security is currently in default.
(g)Securities were purchased pursuant to Regulation S under the Securities Act of 1933, as amended, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, as amended, or pursuant to an exemption from registration. These securities have been deemed liquid under procedures approved by the Fund's Board of Directors (the "Board"). As of December 31, 2023, the aggregate fair value of those securities was $8,149,526, representing 3.68% of net assets.
(h)Issued with a zero coupon.
(i)Interest only securities.
(j)Step up bond. Coupon changes periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect at December 31, 2023.
(k)Security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(l)Pay-in-kind securities. Rate paid in-kind is shown in parenthesis.

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 31

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Schedule of Investments December 31, 2023 (Unaudited)

 

Futures Contracts Purchased:

 

Description  Contracts 

Expiration

Date

 

Notional

Value

  

Value and Unrealized

Appreciation/

(Depreciation)

 
10-Yr U.S. Treasury Note Futures  130  March 2024  $15,342,031   $667,669 
         $15,342,031   $667,669 

 

See Notes to Financial Statements.

 

32 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Statement of Assets and Liabilities December 31, 2023 (Unaudited)

 

ASSETS:    
Investments in securities:     
At cost  $383,392,135 
At value  $339,138,815 
      
Cash   128,409 
Receivable for principal repayments   385,377 
Deposit with broker for futures contracts   411,093 
Foreign currency, at value (Cost $10)   10 
Receivable for investments sold   2,333,762 
Interest receivable   2,534,950 
Dividends receivable   103,060 
Deferred offering costs   17,088 
Prepaid and other assets   33,236 
Total Assets   345,085,800 
      
LIABILITIES:     
Variation margin payable   33,281 
Line of credit fees payable   8,611 
Dividend payable - Series A Cumulative Perpetual Preferred Shares   328,125 
Dividend payable - Series B Cumulative Perpetual Preferred Shares   356,250 
Payable for investments purchased   2,499,650 
Payable to Adviser   286,585 
Payable to fund accounting and administration   100,152 
Payable to transfer agency   6,280 
Payable to Directors   1,060 
Payable for compliance fees   12,514 
Payable for custodian fees   12,345 
Payable for audit fees   38,395 
Other payables   109,201 
Total Liabilities   3,792,449 
Cumulative Perpetual Preferred Shares, $0.0001 par value per share, 4,930,000 of shares authorized     
Series A Cumulative Perpetual Preferred Shares (4.375%, $25 liquidation value, 2,400,000 shares issued and outstanding)  $60,000,000 
Series B Cumulative Perpetual Preferred Shares (4.75%, $25 liquidation value, 2,400,000 shares issued and outstanding)  $60,000,000 
Net Assets Attributable to Common Shareholders  $221,293,351 
      
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS CONSIST OF:     
Paid-in capital  $301,549,875 
Total distributable earnings   (80,256,524)
Net Assets Attributable to Common Shareholders  $221,293,351 
      
PRICING OF SHARES:     
Net Assets Attributable to Common Shareholders  $221,293,351 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 33

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Statement of Assets and Liabilities December 31, 2023 (Unaudited)

 

Shares of common stock outstanding (50,000,000 of shares authorized, at $0.0001 par value per share)   22,971,194 
Net asset value per share Attributable to Common Shareholders  $9.63 

 

See Notes to Financial Statements.

 

34 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Statement of Operations For the Six Months Ended December 31, 2023 (Unaudited)

 

INVESTMENT INCOME:    
Interest  $12,126,666 
Dividends   1,598,820 
Other Income   8,952 
Total Investment Income   13,734,438 
      
EXPENSES:     
Investment Adviser fee   1,682,365 
Accounting and Administration fees   207,660 
Printing expenses   96,425 
Shareholder servicing expenses   84,903 
Director expenses   60,038 
Legal expenses   58,280 
Audit expenses   48,104 
Transfer agent expenses   41,518 
Interest expense on loan payable   33,333 
Custodian fees   15,016 
Compliance expense   14,515 
Offering expenses   14,324 
Listing expense   14,233 
Insurance fee   2,084 
Other expenses   35,930 
Total Expenses   2,408,728 
Net Investment Income   11,325,710 
      
REALIZED AND UNREALIZED GAIN/(LOSS):     
Net realized gain/(loss) on:     
Investments   (13,164,556)
Futures contracts   (929,959)
Net realized loss   (14,094,515)
Net change in unrealized appreciation/depreciation on:     
Investments   19,444,660 
Futures contracts   768,542 
Net change in unrealized appreciation/depreciation   20,213,202 
Net Realized and Unrealized Gain on Investments   6,118,687 
Dividends to Series A Cumulative Perpetual Preferred Shares   (1,312,524)
Dividends to Series B Cumulative Perpetual Preferred Shares   (1,425,012)
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations  $14,706,861 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 35

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Statements of Changes in Net Assets Attributable to Common Shareholders

 

  

For the

Six Months Ended

December 31, 2023

(Unaudited)

  

For the

Year Ended

June 30, 2023

 
NET INCREASE/(DECREASE) IN NET ASSETS          
ATTRIBUTABLE TO COMMON SHAREHOLDERS FROM          
OPERATIONS:          
Net investment income  $11,325,710   $21,517,833 
Net realized loss   (14,094,515)   (6,667,210)
Net change in unrealized appreciation/depreciation   20,213,202    (9,087,794)
Net increase in net assets resulting from operations   17,444,397    5,762,829 
Distributions to Series A Preferred Shareholders   (1,312,524)   (2,625,024)
Distributions to Series B Preferred Shareholders   (1,425,012)   (2,850,012)
Net increase in net assets attributable to common shareholders resulting from operations   14,706,861    287,793 
           
DISTRIBUTIONS TO COMMON SHAREHOLDERS:          
From distributable earnings   (14,072,153)   (19,920,570)
From tax return of capital       (12,963,911)
Net decrease in net assets attributable to common shareholders from distributions to common shareholders   (14,072,153)   (32,884,481)
           
COMMON SHARE TRANSACTIONS:          
Proceeds from common shares sold, net of offering costs       33,999,204 
Reinvestment of distributions       133,143 
Net increase in net assets attributable to common shareholders from capital share transactions       34,132,347 
           
Net Increase in Net Assets attributable to common shareholders   634,708    1,535,659 
           
NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS:          
Beginning of period   220,658,643    219,122,984 
End of period  $221,293,351   $220,658,643 
           
OTHER INFORMATION:          
Common Share Transactions:          
Common Shares outstanding - beginning of period   22,971,194    19,443,627 
Common Shares sold       3,515,805 
Common Shares issued in reinvestment of distributions       11,762 
Common Shares outstanding - end of period   22,971,194    22,971,194 

 

See Notes to Financial Statements.

 

36 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Statement of Cash Flows For the Six Months Ended December 31, 2023 (Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES:     
Net increase in net assets resulting from operations  $17,444,397 
Adjustments to reconcile net increase in net assets attributable to common shareholders from operations to net cash used in operating activities:     
Purchases of investment securities   (147,141,932)
Proceeds from disposition on investment securities   137,195,021 
Amortization of premium and accretion of discount on investments, net   510,229 
Net proceeds from short-term investment securities   14,796,906 
Net realized (gain)/loss on:     
Investments   13,164,556 
Net change in unrealized appreciation/depreciation on:     
Investments   (19,444,660)
(Increase)/Decrease in assets:     
Interest receivable   (188,930)
Dividends receivable   (15,528)
Variation margin receivable on futures contracts   37,105 
Deferred offering costs   (4,207)
Receivable for principal repayments   173,821 
Prepaid and other assets   16,317 
Increase/(Decrease) in liabilities:     
Variation margin payable   33,281 
Payable for shareholder servicing   (28,063)
Line of credit fees payable   8,611 
Payable to transfer agency   (220)
Payable to Adviser   5,885 
Payable to fund accounting and administration fees   21,818 
Payable to Directors   1,060 
Payable for audit fees   (21,396)
Payable for compliance fees   4,390 
Payable for Custodian fees   4,629 
Other payables   (55,025)
Net cash provided by operating activities  $16,518,065 
      
CASH FLOWS FROM FINANCING ACTIVITIES:     
Cash distributions paid to common shareholders  $(14,072,153)
Cash distributions paid to preferred shareholders   (2,737,536)
Net cash used in financing activities  $(16,809,689)
      
Net decrease in cash and restricted cash  $(291,624)
Cash and restricted cash, beginning of period  $831,136 
Cash and restricted cash, end of period  $539,512 

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 37

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Statement of Cash Flows For the Six Months Ended December 31, 2023 (Unaudited)

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:     
Cash paid for interest expense and fees for line of credit  $33,333 
      
Reconciliation of restricted and unrestricted cash at the beginning of period to the statement of assets and liabilities:     
Cash  $443,622 
Deposit with broker for futures contracts  $387,504 
      
Reconciliation of restricted and unrestricted cash at the end of the period to the statement of assets and liabilities:     
Cash  $128,419 
Deposit with broker for futures contracts  $411,093 

 

See Notes to Financial Statements.

 

38 (888) 848-7569 | www.rivernorth.com

 

 

Intentionally Left Blank

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Financial Highlights For a common share outstanding throughout the periods presented

 

Net asset value - beginning of period
Income/(loss) from investment operations:
Net investment income(a)
Net realized and unrealized gain/(loss)(b)
Total income/(loss) from investment operations
Less distributions to common shareholders:
From net investment income
From tax return of capital
Total distributions to common shareholders
Less distributions to preferred shareholders:
From net investment income(c)
Total distributions to preferred shareholders
Common share transactions:
Dilutive effect of rights offering
Common share offering costs charged to paid-in capital
Total common share transactions
 
Preferred Share issuance and offering costs charged to paid-in capital
Total preferred share transactions
Net increase/(decrease) in net asset value
Net asset value - end of period
Market price - end of period
Total Return(f)
Total Return - Market Price(f)
Supplemental Data:
Net assets, end of period (in thousands)
Ratio of expenses to average net assets(h)(i)
Ratio of net investment income
Portfolio turnover rate
Loan payable (in thousands)
Asset coverage per $1,000 of loan payable(k)
Cumulative Perpetual Preferred Stock (in thousands)
Asset coverage of Cumulative Perpetual Preferred Stock(l)
 
Involuntary liquidating preference per unit of Series A Cumulative Preferred Stock
 
Average market value per unit of Series A Cumulative Preferred Stock
 
Involuntary liquidating preference per unit of Series B Cumulative Preferred Stock
 
Average market value per unit of Series B Cumulative Preferred Stock

 

See Notes to Financial Statements.

 

40 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Financial Highlights For a common share outstanding throughout the periods presented

 

For the

Six Months

Ended

December 31, 2023

(Unaudited)

  

For the

Year Ended

June 30, 2023

  

For the

Year Ended

June 30, 2022

  

For the

Year Ended

June 30, 2021

  

For the

Year Ended

June 30, 2020

  

For the

Year Ended

June 30, 2019

 
$9.61   $11.27   $15.17   $14.91   $18.09   $18.75 
                            
 0.49    0.97    0.87    0.92    0.95    0.94 
 0.26    (0.78)   (2.49)   1.73    (1.72)   0.40 
 0.75    0.19    (1.62)   2.65    (0.77)   1.34 
                            
 (0.61)   (0.91)   (0.81)   (1.02)   (1.11)   (1.18)
     (0.59)   (1.03)   (1.01)   (1.07)   (0.82)
 (0.61)   (1.50)   (1.84)   (2.03)   (2.18)   (2.00)
                            
 (0.12)   (0.25)   (0.24)   (0.13)        
 (0.12)   (0.25)   (0.24)   (0.13)        
                            
     (0.10)   (0.06)(d)   (0.05)(d)   (0.22)(d)    
         (0.01)   0.00(e)    (0.01)    
     (0.10)   (0.07)   (0.05)   (0.23)    
                            
         (0.13)   (0.18)        
         (0.13)   (0.18)        
 0.02    (1.66)   (3.90)   0.26    (3.18)   (0.66)
$9.63   $9.61   $11.27   $15.17   $14.91   $18.09 
$8.36   $8.54   $10.89   $15.58   $13.91   $17.06 
 6.99%(g)   (1.26%)   (14.82%)   16.88%   (5.31%)   7.78%
 5.44%(g)   (7.92%)   (19.86%)   28.67%   (6.33%)   8.50%
                            
$221,293   $220,659   $219,123   $224,826   $199,510   $199,213 
 2.23%(j)   2.22%   1.93%   2.10%   2.84%   3.16%
 10.50%(j)   9.61%   6.32%   6.15%   5.73%   5.17%
 41%(g)   75%   44%   54%   43%   27%
$   $   $   $21,000   $65,500   $73,500 
             14,563    4,046    3,711 
$120,000   $120,000   $120,000   $60,000   $   $ 
 71    71    71    119         
                            
 25.00    25.00    25.00    25.00         
                            
 17.92    18.59    22.98    24.44         
                            
 25.00    25.00    25.00             
                            
 19.47    19.64    22.93             

 

See Notes to Financial Statements.

 

Semi-Annual Report | December 31, 2023 41

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Financial Highlights For a common share outstanding throughout the periods presented

 

(a)Based on average shares outstanding during the period.
(b)Recognition of net investment income by the Fund is affected by the timing of the declarations of dividends by the underlying closed-end funds in which the Fund invests. The ratio does not include net investment income of the closed-end funds in which the Fund invests.
(c)Calculated using the average shares method.
(d)Represents the impact of the Fund’s rights offering of 3,508,633 in September 2022, 2,926,441 in October 2021 and 472,995 shares in October 2020 and 2,371,081 shares in December 2019 at a subscription price per share based on a formula. For more details please refer to Note 10 of the Notes to Financial Statements.
(e)Less than $0.005 per share.
(f)Total investment return is calculated assuming a purchase of common shares at the opening on the first day and a sale at closing on the last day of each period reported. For purposes of this calculation, dividends and distributions, if any, are assumed to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment returns do not reflect brokerage commissions, if any. Periods less than one year are not annualized.
(g)Not annualized.
(h)Includes interest expenses, as applicable, of 0.00% for the six months ended December 31, 2023, 0.00% for the year ended June 30, 2023, 0.05% for the year ended June 30, 2022, 0.21% for the year ended June 30, 2021, 0.91% for the year ended June 30, 2020 and 1.23% for the year ended June 30, 2019.
(i)Does not include expenses of the closed-end funds in which the Fund invests.
(j)Annualized.
(k)Calculated by subtracting the Fund’s total liabilities not represented by senior securities from the Fund’s total assets and dividing by the aggregate amount of the Fund’s senior securities representing indebtedness outstanding, and multiplying by $1,000.
(l)The asset coverage ratio for a class of senior securities representing stock is calculated as the Fund's total assets, less all liabilities and indebtedness not represented by the Fund's senior securities, divided by secured senior securities representing indebtedness plus the aggregate of the involuntary liquidation preference of secured senior securities which are stock. With respect to the Preferred Stock, the asset coverage per unit figure is expressed in terms of dollar amounts per share of outstanding Preferred Stock (based on a liquidation preference of $25).

 

See Notes to Financial Statements.

 

42 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

1. ORGANIZATION

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”) is a closed-end management investment company that was organized as a Maryland corporation on June 22, 2016, and commenced investment operations on September 28, 2016. The investment adviser to the Fund is RiverNorth Capital Management, LLC (the “Adviser”). The Fund’s sub-adviser is DoubleLine Capital, LP (“Sub-Adviser”). The Fund is a diversified investment company with an investment objective to seek current income and overall total return.

 

The Fund seeks to achieve its investment objective by allocating its Managed Assets among three principal strategies: Tactical Closed End Fund Income Strategy, Alternative Credit Strategy and Opportunistic Income Strategy. The Adviser will determine the portion of the Fund’s Managed Assets to allocate to each strategy and may, from time to time, adjust the allocations.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

 

The following is a summary of significant accounting policies followed by the Fund. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The financial statements are prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the reported amounts and disclosures, including the disclosure of contingent assets and liabilities, in the financial statements during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Fund ultimately realizes upon sale of the securities. The Fund is considered an investment company for financial reporting purposes under GAAP and follows the accounting and reporting guidance applicable to investment companies as codified in Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies. The financial statements have been prepared as of the close of the New York Stock Exchange (“NYSE”) on December 31, 2023.

 

Security Valuation: The Fund’s investments are generally valued at their fair value using market quotations. If a market value quotation is unavailable a security may be valued at its estimated fair value as described in Note 3.

 

Security Transactions and Related Income: The Fund follows industry practice and records security transactions on the trade date basis. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date or for certain foreign securities, when the information becomes available to the Fund and interest income and expenses are recorded on an accrual basis. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Paydown gains and losses on mortgage-related and other asset-backed securities are recorded as components of interest income on the Statement of Operations. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific country or region. Settlement on bank loans transactions may be in excess of seven business days. Interest only stripped mortgage backed securities (“IO Strips”) are securities that receive only interest payments from a pool of mortgage loans. Little to no principal will be received by the Fund upon maturity of an IO Strip. Periodic adjustments are recorded to reduce the cost of the security until maturity, which are included in interest income.

 

 

Semi-Annual Report | December 31, 2023 43

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Prevailing foreign exchange rates may generally be obtained at the close of the NYSE (normally, 4:00 p.m. Eastern time). The portion of realized and unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed and is included in realized and unrealized gains or losses on investments, when applicable.

 

Cash Balance: The Fund places its cash on deposit with financial institutions in the United States, which are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. The Fund's credit risk in the event of failure of these financial institutions is represented by the difference between the FDIC limit and the total amounts on deposit. Management monitors the financial institutions' creditworthiness in conjunction with balances on deposit to minimize risk. The Fund from time to time may have amounts on deposit in excess of the insured limits.

 

Preferred Stock: In accordance with ASC 480-10-25, the Fund's Series A and Series B Cumulative Perpetual preferred shares have been classified as equity on the Statement of Assets and Liabilities. Refer to "Note 9. Cumulative Perpetual Preferred Stock" for further details.

 

Other: The Fund holds certain investments which pay dividends to their shareholders based upon available funds from operations. It is possible for these dividends to exceed the underlying investments’ taxable earnings and profits resulting in the excess portion of such dividends being designated as a return of capital. Distributions received from investments in securities that represent a return of capital or long-term capital gains are recorded as a reduction of the cost of investments or as a realized gain, respectively.

 

The Fund invests in closed-end funds, each of which has its own investment risks. Those risks can affect the value of the Fund's investments and therefore the value of the Fund's shares. To the extent that the Fund invests more of its assets in one closed end fund than in another, the Fund will have greater exposure to the risks of that closed end fund.

 

Common Share Valuation: The NAV is generally calculated as of the close of trading on the NYSE (normally 4:00 p.m. Eastern time) every day the NYSE is open. The NAV is calculated by dividing the value of all of the securities and other assets of the Fund, less the liabilities (including accrued expenses and indebtedness), by the total number of common shares outstanding.

 

Federal Income Taxes: The Fund has been treated as, and intends to qualify each year for special tax treatment afforded to, a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (“IRC”). In order to qualify as a RIC, the Fund must, among other things, satisfy income, asset diversification and distribution requirements. As long as it so qualifies, the Fund will not be subject to U.S. federal income tax to the extent that it distributes annually its investment company taxable income and its “net capital gain”. If the Fund retains any investment company taxable income or net capital gain, it will be subject to U.S. federal income tax on the retained amount at regular corporate tax rates. In addition, if the Fund fails to qualify as a RIC for any taxable year, it will be subject to U.S. federal income tax on all of its income and gains at regular corporate tax rates.

 

 

44 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

As of and during the six months ended December 31, 2023, the Fund did not have a liability for any unrecognized tax benefits. The Fund files U.S. federal, state, and local tax returns as required. The Fund’s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return for federal purposes and four years for most state returns. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

 

The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expenses on the Statement of Operations. During the six months ended December 31, 2023, the Fund did not incur any interest or penalties.

 

Distributions to Shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to common shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of recognition of certain components of income, expense, or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassification will have no effect on net assets, results of operations, or net asset values (“NAV”) per common share of the Fund.

 

The Fund maintains a level distribution policy. The Fund distributes to common shareholders regular monthly cash distributions of its net investment income. In addition, the Fund distributes its net realized capital gains, if any, at least annually. At times, to maintain a stable level of distributions, the Fund may pay out less than all of its net investment income or pay out accumulated undistributed income, or return of capital, in addition to current net investment income. Any distribution that is treated as a return of capital generally will reduce a common shareholder’s basis in his or her shares, which may increase the capital gain or reduce the capital loss realized upon the sale of such shares. Any amounts received in excess of a common shareholder’s basis are generally treated as capital gain, assuming the shares are held as capital assets. The Board approved the implementation of the level distribution policy to make monthly cash distributions to common shareholders, stated in terms of a rate equal to 12.5% of the average of the Fund’s NAV per common share for the final five trading days of the previous calendar year. The Fund made monthly distributions to common shareholders set at a level monthly rate of $0.1021 per common share for the six months ended December 31, 2023.

 

Previously, the Board approved the adoption of a managed distribution plan in accordance with a Section 19(b) exemptive order whereby the Fund made monthly distributions to common shareholders set at a fixed monthly rate.

 

Distributions to holders of cumulative perpetual preferred stock are accrued on a daily basis as described in Note 9.

 

 

Semi-Annual Report | December 31, 2023 45

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS

 

 

Fair value is defined as the price that the Fund might reasonably expect to receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

 

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including using such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

  Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;
     
  Level 2 Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
     
  Level 3 Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

Equity securities, including closed-end funds and business development company notes, are generally valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices more accurately reflect the fair market value of such securities. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price. When using the market quotations or close prices provided by the pricing service and when the market is considered active, the security will be classified as a Level 1 security. Sometimes, an equity security owned by the Fund will be valued by the pricing service with factors other than market quotations or when the market is considered inactive. When this happens, the security will be classified as a Level 2 security. When market quotations are not readily available, when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current fair value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Adviser, as the Fund's valuation designee, in conformity with guidelines adopted by and subject to review by the Board. These securities will be categorized as Level 3 securities.

 

 

46 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

Investments in mutual funds, including short term investments, are generally priced at the ending NAV provided by the service agent of the funds. These securities will be classified as Level 1 securities.

 

Domestic and foreign fixed income securities, including foreign and U.S. corporate bonds, foreign and U.S. government bonds, non-agency collateralized mortgage obligations, U.S. Government/ Agency mortgage backed securities, bank loans, and collateralized loan obligations are normally valued on the basis of quotes obtained from brokers and dealers or independent pricing services. Foreign currency positions, including forward foreign currency contracts, are priced at the mean between the closing bid and asked prices at 4:00 p.m. Eastern Time. Prices obtained from independent pricing services typically use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Data used to establish quotes includes analysis of cash flows, pre-payment speeds, default rates, delinquency assumptions and assumptions regarding collateral and loss assumptions. These securities will be classified as Level 2 securities.

 

Small business loans, as an asset class, are not presently traded on a developed secondary market. Therefore, market quotations are not available. Accordingly, all small business loans are fair valued as determined in good faith by the Adviser pursuant to policies and procedures approved by the Board and subject to the Board’s oversight. The Fund's holdings in small business loans are fair valued daily by the Adviser using a discounted cash flow methodology. Discounted cash flow is a valuation technique that provides an estimation of the fair value of an asset based on expectations about cash flows that a small business loan would generate over time. In general, the primary inputs of fair value in the small business loan valuation model are expected future default rates, prepayment rates, and the discount rate applied. A discounted cash flow model begins with an estimation of periodic cash flows expected to be generated over a discrete period of time (generally the time remaining until maturity of the loan). The estimated cash flows for each interval period (generally monthly) are then converted to their present value equivalent using a rate of return appropriate for the risk of achieving projected cash flows. Although not exhaustive, discounted cash flow models factor in borrower level data. Loans made to small businesses may incorporate different factors.

 

Short-term investments in fixed income securities, excluding money market funds, with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, and of sufficient credit quality are valued by using the amortized cost method of valuation. These securities will be classified as Level 2 securities.

 

Effective September 8, 2022, and pursuant to the requirements of Rule 2a-5 under the 1940 Act, the Board approved updated valuation procedures for the Fund and designated the Adviser as the Fund's valuation designee to make all fair valuation determinations with respect to the Fund's portfolio investments, subject to the Board's oversight.

 

 

Semi-Annual Report | December 31, 2023 47

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

In accordance with the Fund’s good faith pricing guidelines, the Adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) discounted cash flow models; (iii) weighted average cost or weighted average price; (iv) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (v) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Adviser’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Fund’s NAV calculation that may affect a security’s value, or the Adviser is aware of any other data that calls into question the reliability of market quotations.

 

Good faith pricing may also be used in instances when the bonds in which the Fund invests default or otherwise cease to have market quotations readily available.

 

 

48 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Notes to Financial Statements December 31, 2023 (Unaudited)

 

The following is a summary of the inputs used at December 31, 2023 in valuing the Fund’s assets and liabilities:

 

Investments in Securities at Value* 

Level 1 -

Quoted Prices

  

Level 2 -

Other Significant

Observable

Inputs

  

Level 3 -

Significant

Unobservable

Inputs

   Total 
Closed-End Funds  $14,843,179   $   $   $14,843,179 
Bank Loans       6,156,760        6,156,760 
Small Business Loans  $   $   $62,597,537   $62,597,537 
Special Purpose Acquisition Companies   286,899    122,258        409,157 
Common Stocks   1,035,902    51,882        1,087,784 
Rights   26,603            26,603 
Warrants   70,864            70,864 
Preferred Stocks   3,236,140            3,236,140 
Collateralized Loan Obligations       18,868,627        18,868,627 
U.S. Corporate Bonds       33,134,391        33,134,391 
U.S. Government / Agency Mortgage Backed Securities       74,266,272        74,266,272 
U.S. Government Bonds and Notes       36,103,562        36,103,562 
Foreign Corporate Bonds       12,074,182        12,074,182 
Foreign Government Bonds and Notes, Supranationals and Foreign Agencies       930,449        930,449 
Non-Agency Collateralized Mortgage Obligations       64,262,656        64,262,656 
Short-Term Investments   11,070,652            11,070,652 
Total  $30,570,239   $245,971,039   $62,597,537   $339,138,815 
Other Financial Instruments**                    
Assets:                    
Future Contracts  $667,669   $   $   $667,669 
Total  $667,669   $   $   $667,669 

 

*Refer to the Fund's Schedule of Investments for a listing of securities by type.
**Other financial instruments are derivative instruments reflected in the Schedule of Investments. Futures contracts are reported at their unrealized appreciation/depreciation.

 

 

Semi-Annual Report | December 31, 2023 49

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

The changes of the fair value of investments for which the Fund has used Level 3 inputs to determine the fair value are as follows:

 

Asset Type 

Balance

as of June

30, 2023

  

Accrued

Discount/

premium

  

Return

of

Capital

  

Realized

Gain/(Loss)

  

Change in

Unrealized

Appreciation

/Deperciation

   Purchases   Sales Proceeds  

Transfer

into

Level 3

  

Transfer

Out of

Level 3

  

Balance as

of December

31, 2023

  

Net change in

unrealized

appreciation/

(depreciation)

included in the

Statements of

Operations

attributable to

Level 3

investments

held at

December

31, 2023

 
Small Business Loan  $52,824,728   $   $   $(18,116)  $(2,183,471)  $78,440,345   $(66,465,949)  $   $   $62,597,537   $(1,733,517)
   $52,824,728   $   $   $(18,116)  $(2,183,471)  $78,440,345   $(66,465,949)  $   $   $62,597,537   $(1,733,517)

 

The table below provides additional information about the Level 3 Fair Value Measurements as of December 31, 2023:

 

Asset Class  Fair Value (USD)  

Valuation

Technique

 

Unobservable

Inputs(a)

 

Value/Range

(Weighted Average)

Small Business Loans  $62,597,537   Discounted Cash Flow  Loss-Adjusted Discount Rate  3.21%-21.03% (11.14%)
           Projected Loss Rate  0.00%-89.38% (8.04%)

 

(a)A change to the unobservable input may result in a significant change to the value of the investment as follows:

 

Unobservable Inputs Impact to Value if Input Increases Impact to Value if Input Decreases
Loss-Adjusted Discount Rate Decrease Increase
Projected Loss Rate Decrease Increase

 

 

50 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

Derivative Instruments: The following tables disclose the amounts related to the Fund’s use of derivative instruments.

 

The effect of derivatives instruments on the Fund's Statement of Assets and Liabilities as of December 31, 2023:

 

  

Asset

Derivatives

    
Risk Exposure Statement  Statement of Assets and Liabilities
Location
  Fair Value 
Interest Rate Risk (Futures Contracts)*  Variation margin payable  $667,669 

 

*The value presented includes cumulative loss on open futures contracts; however the value reflected on the accompanying Statement of Assets and Liabilities is variation margin payable as of December 31, 2023.

 

The effect of derivative instruments on the Statement of Operations for the six months ended December 31, 2023:

 

Risk Exposure  Statement of Operations Location 

Realized

Gain/Loss on

Derivatives

  

Change in

Unrealized

Appreciation/

Depreciation

on Derivatives

 
Interest rate risk (Futures contracts)  Net realized gain on futures contracts; Net change in unrealized appreciation/ depreciation on futures contracts  $(929,959)  $768,542 

 

The futures contracts average notional amount during the six months ended December 31, 2023, is noted below.

 

Fund 

Average Notional Amount

of Futures Contracts

 
RiverNorth/DoubleLine Strategic Opportunity Fund  $8,132,083 

 

4. ADVISORY FEES, DIRECTOR FEES AND OTHER AGREEMENTS

 

 

RiverNorth serves as the investment adviser to the Fund. Under the terms of the management agreement (the “Agreement”), the Adviser, subject to the supervision of the Board, provides or arranges to be provided to the Fund such investment advice as it deems advisable and will furnish or arrange to be furnished a continuous investment program for the Fund consistent with the Fund’s investment objectives and policies. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly in arrears at an annual rate of 1.00% of the average daily managed assets of the Fund. Managed assets are defined as the total assets of the Fund, including assets attributable to leverage, minus liabilities other than debt representing leverage and any preferred stock that may be outstanding. For the six months ended December 31, 2023, the Adviser earned fees of $1,682,365, of which $286,585 remained payable at December 31, 2023. The Fund also paid the Adviser $14,515 in chief compliance officer ("CCO") fees, of which $12,514 remained payable at December 31, 2023.

 

 

Semi-Annual Report | December 31, 2023 51

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

DoubleLine Capital, LP is the investment sub-adviser to the Fund. Under the terms of the sub-advisory agreement, the Sub-Adviser, subject to the supervision of the Adviser and the Board, provides or arranges to be provided to the Fund such investment advice as deemed advisable and will furnish or arrange to be furnished a continuous investment program for the portion of assets managed in the Fund consistent with the Fund’s investment objective and policies. As compensation for its sub-advisory services, the Adviser is obligated to pay the Sub-Adviser a fee computed and accrued daily and paid monthly in arrears based on an annual rate of 0.50% of the average daily managed assets of the Fund.

 

ALPS Fund Services, Inc. (“ALPS”) provides the Fund with fund administration and fund accounting services. As compensation for its services to the Fund, ALPS receives an annual fee based on the Fund’s average daily net assets, subject to certain minimums.

 

State Street Bank & Trust, Co. serves as the Fund’s custodian. Millennium Trust serves as a custodian for electronic loan documents related to the Alternative Credit Strategy.

 

DST Systems, Inc. (“DST”), the parent company of ALPS, serves as the Transfer Agent to the Fund. Under the Transfer Agency Agreement, DST is responsible for maintaining all shareholder records of the Fund. DST is a wholly-owned subsidiary of SS&C Technologies Holdings, Inc. (“SS&C”), a publicly traded company listed on the NASDAQ Global Select Market.

 

The Fund pays no salaries or compensation to its officers or to any interested Director employed by the Adviser or Sub-Adviser, and the Fund has no employees except as noted below. For their services, the Directors of the Fund who are not employed by the Adviser or Sub-Adviser, receive an annual retainer in the amount of $16,500, and an additional $1,500 for attending each quarterly meeting of the Board. In addition, the lead Independent Director receives $250 annually, the Chair of the Audit Committee receives $500 annually and the Chair of the Nominating and Corporate Governance Committee receives $250 annually. The Directors not employed by the Adviser or Sub-Adviser are also reimbursed for all reasonable out-of-pocket expenses relating to attendance at meetings of the Board. See Note 12 for additional information.

 

The CCO of the Fund is an employee of the Adviser. The Fund reimburses the Adviser for certain compliance costs related to the Fund, including a portion of the CCO's compensation.

 

 
52 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

5. NEW ACCOUNTING PRONOUNCEMENTS AND RULE ISSUANCES

 

 

In December 2022, FASB deferred ASU 2022-04 and issued ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848, which extends the application of the amendments through December 31, 2024. Management has not yet elected to apply the amendments, is continuously evaluating the potential effect a discontinuation of LIBOR could have on the Funds’ investments and has currently determined that it is unlikely the ASU’s adoption will have a significant impact on the Funds’ financial statements and various filings.

 

In June 2022, the FASB issued ASU 2022-03 to clarify the guidance in Topic 820, Fair Value Measurement ("Topic 820"). The amendments in ASU 2022-03 affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 (1) clarifies the guidance in Topic 820, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of equity security, (2) amends a related illustrative example, and (3) introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. For public business entities, the amendments in ASU 2022-03 are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. Management is currently assessing the impact of these provisions on the Funds' financial statements.

 

6. CREDIT AGREEMENT

 

 

The Fund may borrow money and/or issue preferred stock, notes or debt securities for investment purposes. These practices are known as leveraging. The Fund may use leverage through borrowings or the issuance of preferred stock, in an aggregate amount of up to 33 1/3% of the Fund’s total assets immediately after such borrowings or issuance.

 

On December 16, 2016, the Fund entered into a $75,000,000 secured, revolving, evergreen credit facility with U.S. Bank National Association (“U.S. Bank”). The credit facility had a variable annual interest rate equal to one-month LIBOR plus 0.95 percent. The credit facility accrued a commitment fee equal to an annual rate of 0.10 percent on $75,000,000.

 

On April 1, 2022, the Fund entered into an amended $50,000,000 secured, revolving, evergreen credit facility with U.S. Bank, which was terminated on October 14, 2022. The amended credit facility had a variable annual interest rate equal to SOFR plus 1.10 percent. The amended credit facility accrued a commitment fee equal to an annual rate of 0.25 percent if the drawn amount was less than $37,500,000 and 0.125 percent if the drawn amount was $37,500,000 or more.

 

On August 1, 2023, the Fund entered into an additional credit agreement with BNP Paribas (“BNP Credit Agreement”). The BNP Credit Agreement permits the Fund to borrow funds that are collateralized by assets held at BNP Paribas pursuant to the agreement. Under the terms of the BNP Credit Agreement, the Fund may borrow up to $25,000,000 bearing an interest rate of the Overnight Bank Funding Rate plus a fixed rate determined by the securities pledged as collateral. Any unused portion of the BNP Credit Agreement is subject to a commitment fee of 0.50% of the unused portion of the facility until a utilization of 80% or greater is met.

 

 

Semi-Annual Report | December 31, 2023 53

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

The Fund did not utilize the BNP Credit Agreement for the six months ended December 31, 2023. There was no outstanding balance on the BNP Credit Agreement as of December 31, 2023.

 

7. TAX BASIS INFORMATION

 

 

It is the Fund’s policy to meet the requirements of the IRC applicable to regulated investment companies, and to distribute all of its taxable net income to its shareholders. In addition, the Fund intends to pay distributions as required to avoid imposition of excise tax. Therefore, no federal income tax provision is required.

 

Tax Basis of Distributions to Shareholders: The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gains were recorded by the Fund.

 

The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end and are not available for the six months ended December 31, 2023.

 

The tax character of the distributions paid by the Fund during the fiscal year ended June 30, 2023, was as follows:

 

  

For the Year Ended

June 30, 2023

 
Ordinary Income  $19,920,570 
Ordinary Income Preferred   4,790,661 
Return of Capital   12,963,911 
Total  $37,675,142 

 

Unrealized Appreciation and Depreciation on Investments: As of December 31, 2023, net unrealized appreciation/(depreciation) of investments based on federal tax costs was as follows:

 

Cost of investments for income tax purposes  $398,233,318 
Gross appreciation on investments (excess of value over tax cost)   11,595,654 
Gross depreciation on investments (excess of tax cost over value)   (55,348,126)
Net unrealized depreciation on investments  $(43,752,472)

 

 
54 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

The difference between book and tax basis unrealized appreciation/(depreciation) for the Fund is primarily attributable to wash sales, income adjustments on income-only securities and grantor trusts.

 

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. tax returns and state tax returns filed since inception of the Fund. No income tax returns are currently under examination. The tax years since 2018 remain subject to examination by the tax authorities in the United States. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

 

8. INVESTMENT TRANSACTIONS

 

 

Investment transactions for the six months ended December 31, 2023, excluding short-term investments, were as follows:

 

   Purchases   Sales 
   $103,498,560   $103,099,296 

 

Investment Transactions in long term U.S. Government Obligations for the six months ended December 31, 2023 were as follows:

 

   Purchases of
Securities
  

Proceeds from

Sales of Securities

 
   $45,074,484   $35,495,703 

 

9. CUMULATIVE PERPETUAL PREFERRED STOCK

 

 

At December 31, 2023, the Fund had issued and outstanding 2,400,000 shares of Series A Cumulative Perpetual Preferred Stock, listed under trading symbol OPPPRA on the NYSE, with a par value of $0.0001 per share and a liquidation preference of $25.00 per share plus accrued and unpaid dividends (whether or not declared) and 2,400,000 shares of Series B Cumulative Perpetual Preferred Stock, listed under trading symbol OPPPRB on the NYSE, with a par value of $0.0001 per share and a liquidation preference of $25.00 per share plus accrued and unpaid dividends (whether or not declared). The Fund issued 2,400,000 shares of Series A Cumulative Perpetual Preferred Stock on October 23, 2020 and 2,400,000 shares of Series B Cumulative Perpetual Preferred Stock on November 22, 2021. The Series A Cumulative Perpetual Preferred Stock is entitled to voting rights and a dividend at a rate of 4.375% per year, paid quarterly, based on the $25.00 liquidation preference before the common stock is entitled to receive any dividends. The Series B Cumulative Perpetual Preferred Stock is entitled to voting rights and a dividend at a rate of 4.75% per year, paid quarterly, based on the $25.00 liquidation preference before the common stock is entitled to receive any dividends. The Series A Cumulative Perpetual Preferred Stock is generally not redeemable at the Fund’s option prior to November 15, 2025, and is subject to mandatory redemption by the Fund in certain circumstances. The Series B Cumulative Perpetual Preferred Stock is generally not redeemable at the Fund’s option prior to February 15, 2027, and is subject to mandatory redemption by the Fund in certain circumstances. On or after November 15, 2025, the Fund may redeem in whole, or from time to time in part, outstanding Series A Cumulative Perpetual Preferred Stock at a redemption price per share equal to the per share liquidation preference of $25.00 per share, plus accumulated and unpaid dividends, if any, through the date of redemption. On or after February 15, 2027, the Fund may redeem in whole, or from time to time in part, outstanding Series B Cumulative Perpetual Preferred Stock at a redemption price per share equal to the per share liquidation preference of $25.00 per share, plus accumulated and unpaid dividends, if any, through the date of redemption.

 

 

Semi-Annual Report | December 31, 2023 55

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

Series 

First

Redemption Date

  Fixed Rate  

Shares

Outstanding

  

Aggregate

Liquidation

Preference

  

Estimated

Fair Value

 
Series A  November 15, 2025   4.375%   2,400,000   $60,000,000   $43,752,000 
Series B  February 15, 2027   4.750%   2,400,000   $60,000,000   $47,952,000 

 

10. CAPITAL SHARE TRANSACTIONS

 

 

The Fund’s authorized capital stock consists of 50,000,000 shares of common stock, $0.0001 par value per share, all of which was initially classified as common shares. Under the rules of the NYSE applicable to listed companies, the Fund is required to hold an annual meeting of stockholders in each year.

 

On August 12-13, 2020, August 10-11, 2021 and August 9-10, 2022, respectively, the Board approved rights offerings to participating shareholders of record who were allowed to subscribe for new common shares of the Fund (the “Primary Subscription”). Record date shareholders received one right for each common share held on the Record Date ("Right"). For every three Rights held, a holder of the Rights was entitled to buy one new common share of the Fund. Record date shareholders who fully exercised all Rights initially issued to them in the Primary Subscription were entitled to buy those common shares that were not purchased by other record date shareholders. The Fund issued new shares of common stock at a subscription price that represented 92.5% to 97.5% of the reported NAV on the expiration date of each rights offering. Offering costs were charged to paid-in-capital upon the exercise of the Rights.

 

The shares of common stock issued, subscription price, and offering costs for the rights offerings were as follows:

 

Record Date  Expiration Date 

Shares of

Common

Stock Issued

  

Subscription

Price

  

Offering

Costs

 
September 3, 2020  October 1, 2020   472,995   $13.88   $122,545 
September 7, 2021  October 1, 2021   2,926,441   $14.48   $292,000 
August 25, 2022  September 23, 2022   3,508,633   $9.70   $122,884 

 

On April 7, 2021 and December 29, 2021, the Fund entered into a distribution agreement with ALPS Distributors, Inc. ("ADI"). Pursuant to the distribution agreement with ADI, the Fund may offer to sell up to 10,000,000 of the Fund's common stock from time to time through ADI.

 

 
56 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Notes to Financial Statements December 31, 2023 (Unaudited)

 

The shares of common stock issued, gross proceeds from the sales of shares, and commissions to ADI were as follows:

 

Year Ended 

Shares of

Common

Stock Issued

  

Gross

Proceeds

   Commissions  

Offering

Costs

   Net Proceeds 
June 30, 2022   1,647,892   $25,745,539   $257,587   $41,019   $25,446,933 
June 30, 2023                    

 

The Fund has issued and outstanding 22,971,194 shares of common stock at December 31, 2023.

 

Additional shares of the Fund may be issued under certain circumstances, including pursuant to the Fund’s Automatic Dividend Reinvestment Plan, as defined within the Fund’s organizational documents. Additional information concerning the Automatic Dividend Reinvestment Plan is included within this report.

 

11. INDEMNIFICATIONS

 

 

Under the Fund’s organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that may contain general indemnification clauses. The Fund’s maximum exposure under those arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

 

12. SUBSEQUENT EVENTS

 

 

Subsequent to December 31, 2023, the Fund paid the following distributions:

 

Ex-Date Record Date Payable Date Rate (per share)
January 12, 2024 January 16, 2024 January 31, 2024 $0.1003
February 14, 2024 February 15, 2024 February 29, 2024 $0.1003

 

On February 14, 2024, the Board declared Series A and Series B preferred stock dividend in the amount of $0.27344 and $0.29688 per share, respectively, payable on February 15, 2024 to preferred shareholders of record on February 2, 2024 with an ex date of February 1, 2024.

 

Effective January 1, 2024, for their services, the Directors of the Fund who are not employed by the Adviser receive an annual retainer in the amount of $16,500, an additional fee of $2,000 for attending each quarterly meeting of the Board of Directors and an additional fee of $1,500 for each special meeting of the Board. In addition, the lead Independent Director receives an additional $1,333 annually, the Chair of the Audit Committee receives an additional $1,111 annually and the Chair of the Nominating and Corporate Governance Committee receives an additional $750 annually.

 

The Fund has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.

 

 

Semi-Annual Report | December 31, 2023 57

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Dividend Reinvestment Plan December 31, 2023 (Unaudited)

 

The Fund has an automatic dividend reinvestment plan commonly referred to as an “opt-out” plan. Unless the registered owner of common shares elects to receive cash by contacting DST (the “Plan Administrator”), all dividends and distributions declared on common shares will be automatically reinvested by the Plan Administrator for shareholders in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”), in additional common shares. Common shareholders who elect not to participate in the Plan will receive all dividends and other distributions in cash paid by check mailed directly to the shareholder of record (or, if the common shares are held in street or other nominee name, then to such nominee) by the Plan Administrator as dividend disbursing agent. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. Such notice will be effective with respect to a particular dividend or other distribution (together, a “Dividend”). Some brokers may automatically elect to receive cash on behalf of common shareholders and may re-invest that cash in additional common shares. Reinvested Dividends will increase the Fund’s Managed Assets on which the management fee is payable to the Adviser (and by the Adviser to the Sub-Adviser).

 

Whenever the Fund declares a Dividend payable in cash, non-participants in the Plan will receive cash and participants in the Plan will receive the equivalent in common shares. The common shares will be acquired by the Plan Administrator for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“Newly Issued Common Shares”) or (ii) by purchase of outstanding common shares on the open market (“Open-Market Purchases”) on the NYSE or elsewhere. If, on the payment date for any Dividend, the closing market price plus estimated brokerage commissions per common share is equal to or greater than the NAV per common share, the Plan Administrator will invest the Dividend amount in Newly Issued common shares on behalf of the participants. The number of Newly Issued common shares to be credited to each participant’s account will be determined by dividing the dollar amount of the Dividend by the Fund’s NAV per common share on the payment date. If, on the payment date for any Dividend, the NAV per common share is greater than the closing market value plus estimated brokerage commissions (i.e., the Fund’s common shares are trading at a discount), the Plan Administrator will invest the Dividend amount in common shares acquired on behalf of the participants in Open-Market Purchases.

 

In the event of a market discount on the payment date for any Dividend, the Plan Administrator will have until the last business day before the next date on which the common shares trade on an “ex-dividend” basis or 30 days after the payment date for such Dividend, whichever is sooner (the “Last Purchase Date”), to invest the Dividend amount in common shares acquired in Open-Market Purchases. It is contemplated that the Fund will pay monthly income Dividends. If, before the Plan Administrator has completed its Open-Market Purchases, the market price per common share exceeds the NAV per common share, the average per common share purchase price paid by the Plan Administrator may exceed the NAV of the common shares, resulting in the acquisition of fewer common shares than if the Dividend had been paid in Newly Issued common shares on the Dividend payment date. Because of the foregoing difficulty with respect to Open-Market Purchases, the Plan provides that if the Plan Administrator is unable to invest the full Dividend amount in Open-Market Purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Administrator may cease making Open-Market Purchases and may invest the uninvested portion of the Dividend amount in Newly Issued common shares at the NAV per common share at the close of business on the Last Purchase Date.

 

 
58 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

Dividend Reinvestment Plan December 31, 2023 (Unaudited)

 

The Plan Administrator maintains all shareholders’ accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Common shares in the account of each Plan participant will be held by the Plan Administrator on behalf of the Plan participant, and each shareholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Administrator will forward all proxy solicitation materials to participants and vote proxies for shares held under the Plan in accordance with the instructions of the participants.

 

Beneficial owners of common shares who hold their common shares in the name of a broker or nominee should contact the broker or nominee to determine whether and how they may participate in the Plan. In the case of common shareholders such as banks, brokers or nominees which hold shares for others who are the beneficial owners, the Plan Administrator will administer the Plan on the basis of the number of common shares certified from time to time by the record shareholder’s name and held for the account of beneficial owners who participate in the Plan.

 

There will be no brokerage charges with respect to common shares issued directly by the Fund. However, each participant will pay a pro rata share of brokerage commissions incurred in connection with Open-Market Purchases. The automatic reinvestment of Dividends will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such Dividends, even though such participants have not received any cash with which to pay the resulting tax. Participants that request a sale of common shares through the Plan Administrator are subject to brokerage commissions.

 

The Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. All correspondence or questions concerning the Plan should be directed to the Plan Administrator at (844) 569-4750.

 

 

Semi-Annual Report | December 31, 2023 59

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Additional Information December 31, 2023 (Unaudited)

 

PROXY VOTING GUIDELINES

 

 

A description of the policies and procedures that the Fund used to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at (888) 848-7569 and (2) from Form N-PX filed by the Fund with the SEC on the SEC’s website at www.sec.gov.

 

PORTFOLIO HOLDINGS DISCLOSURE POLICY

 

 

The Fund files a complete schedule of investments with the SEC for the first and third quarter of the fiscal year on Part F of Form N-PORT. The Fund’s first and third fiscal quarters end on September 30 and March 31. The Form N-PORT filing must be filed within 60 days of the end of the quarter. The Fund's Form N-PORT are available on the SEC's website at www.sec.gov. You may also obtain copies by calling the Fund at 1-888-848-7569.

 

STOCKHOLDER MEETING RESULTS

 

 

On September 15, 2023, the Fund held a Meeting of Stockholders to consider the proposals set forth below. The following votes were recorded:

 

Election of Patrick W. Galley as a Director of the Fund to a three-year term to expire at the Fund’s 2026 Annual Meeting of Stockholders or until his successor is duly elected and qualified.

 

   Shares Voted   % of Shares Voted 
For   15,160,708    94.00%
Withheld   968,510    6.00%
Total   16,129,218    100.00%

 

Election of Jerry R. Raio as a Director of the Fund to a three-year term to expire at the Fund’s 2026 Annual Meeting of Stockholders or until his successor is duly elected and qualified.

 

   Shares Voted   % of Shares Voted 
For   15,080,298    93.50%
Withheld   1,048,920    6.50%
Total   16,129,218    100.00%

 

 
60 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Consideration and Approval of Advisory and Sub-Advisory Agreements December 31, 2023 (Unaudited)

 

Consideration of the Advisory Agreement 

At a meeting (the “Meeting”) of the Board of Directors (the “Board” or the “Directors”) of the RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”) held on November 6-7, 2023 and called expressly for that purpose, the Board, including a majority of the Directors who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) (the “Independent Directors”) considered the renewal of the advisory agreement between RiverNorth Capital Management, LLC (the “Adviser”) and the Fund (the “Advisory Agreement”). In its consideration of the Advisory Agreement, the Board considered information and materials furnished by the Adviser in advance of and at the Meeting and was afforded the opportunity to request additional information and to ask questions of the Adviser to obtain information that it believed to be reasonably necessary to evaluate the terms of the Advisory Agreement. The Board received materials compiled by the Adviser and the Fund’s administrator, including a copy of the Advisory Agreement, the Adviser’s response to a questionnaire regarding the Adviser’s profitability, organization, management and operations, a copy of the Adviser’s Form ADV, the Adviser’s audited financial statements, information regarding the Adviser’s assets under management, an overview of the Fund’s cumulative and annualized returns as compared to the Fund’s benchmark, the Fund’s fact sheet for the quarter ended September 30, 2023, a performance comparison of the Fund to other funds managed by the Adviser, information regarding the Adviser’s compliance programs and a third-party comparison report regarding the Fund’s performance and fees compared to benchmark indices and peer funds provided by FUSE Research Network, LLC (“FUSE”). The Board considered the following factors, among others, in reaching its determination to renew the Advisory Agreement: (i) the investment performance of the Fund and the investment performance of the Adviser, (ii) the nature, extent and quality of the services provided by the Adviser to the Fund, (iii) the experience and qualifications of the personnel providing such services, (iv) the costs of the services provided and the profits to be realized by the Adviser and any of its affiliates from the relationship with the Fund, (v) the extent to which economies of scale will be realized by the Fund as it grows, and (vi) whether the Fund’s fee levels reflected the economies of scale to the benefit of the Fund’s shareholders.

 

The Directors relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory Agreement and the weight to be given to each such factor. The Directors’ conclusions were based on an evaluation of all of the information provided and were not the result of any one factor. Moreover, each Director may have afforded different weight to the various factors in reaching conclusions with respect to the Advisory Agreement. Although not meant to be all-inclusive, the following discussion summarizes the factors considered and conclusions reached by the Directors at the Meeting, including during executive sessions with their independent legal counsel, in determining to renew the Advisory Agreement.

 

Performance, Fees and Expenses

The Board reviewed the performance of the Fund for the three month, one-year, three-year, five-year and since inception periods ended September 30, 2023. These returns were compared to the returns of Tactical-Flexible Allocation funds identified by FUSE (the “Performance Group”). The Board considered the Fund’s net asset value (“NAV”) and market price returns relative to the returns for funds in the Performance Group, noting that on a NAV basis, the Fund had outperformed the median of the Performance Group for the three-month period ended September 30, 2023 and underperformed the median of its Performance Group for the one-year, three-year, five-year and since inception periods ended September 30, 2023. Using market price returns, the Board observed that the Fund had underperformed the median of its Performance Group for the three-month, one-year, three-year, five-year and since inception periods ended September 30, 2023. The Directors also noted that on a NAV basis, the Fund had underperformed its benchmark for the one-year, three-year and since inception periods and outperformed its benchmark for the three-month period ended September 30, 2023. The Directors also reviewed the Fund’s performance relative to other funds managed by the Adviser.

 

 

Semi-Annual Report | December 31, 2023 61

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Consideration and Approval of Advisory and Sub-Advisory Agreements December 31, 2023 (Unaudited)

 

As to the comparative fees and expenses, the Directors considered the management and other fees paid by the Fund and compared those to the management and other fees paid by funds in FUSE’s Tactical-Flexible Allocation fund peer group (the “Expense Group”). The Directors also noted the fact that the fee payable to DoubleLine Capital, LP (the “Sub-Adviser”) is paid by the Adviser and not the Fund. The Board noted that the Fund’s annual net expense ratio was higher than the Expense Group median. The Directors also reviewed supplemental comparison materials provided by FUSE detailing the Fund’s contractual advisory fee and total net expense rankings against its peers calculated on the basis of each fund’s average managed assets to mitigate the distortions caused by differing levels of leverage.

 

The Board noted that the annual management fee for the Fund was above the median paid by the Expense Group but within the range of the fees paid by the funds in the Expense Group. The Directors also reviewed the Fund’s fees relative to other funds managed by the Adviser. The Board, including the Independent Directors, determined that the fees were reasonable given the nature of the Fund’s unique investment strategy, the capabilities of the Adviser and the Sub-Adviser and the nature of the services provided to the Fund.

 

Nature, Extent and Quality of Services

As to the nature, extent and quality of the services provided by the Adviser to the Fund, the Board considered that under the terms of the Advisory Agreement, the Adviser, subject to the supervision of the Board, provides or arranges to be provided to the Fund such investment advice as the Adviser, in its discretion, deems advisable and furnishes or arranges to be furnished a continuous investment program for the Fund consistent with the Fund’s investment objective and policies. The Board reviewed the Adviser’s Form ADV, which was previously provided to the Board and that provided details regarding the experience of each of the Adviser’s personnel. The Adviser also provided additional information regarding its experience managing other investment accounts. Based on the foregoing information, the Board, including the Independent Directors, concluded that the Adviser had provided quality services and would continue to do so for the Fund.

 

Profitability and Other Benefits

As to the cost of the services provided and the profits to be realized by the Adviser, the Board reviewed the Adviser’s estimates of its profitability and its financial condition. The Board reviewed the Adviser’s financial statements and noted the Adviser’s financial condition is stable as income from its asset management operations have contributed to higher revenues for the Adviser. The Board acknowledged the Adviser’s management fees were comparable to those charged to other funds to which the Adviser provides advisory or sub-advisory services. It was noted that, when launching a closed-end fund, such as the Fund, the Adviser covers the underwriting costs, which is a significant investment. The Board, including the Independent Directors, determined that the Advisory Agreement, with respect to the Fund was not overly profitable to the Adviser and the financial condition of the Adviser was adequate.

 

 
62 (888) 848-7569 | www.rivernorth.com

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Consideration and Approval of Advisory and Sub-Advisory Agreements December 31, 2023 (Unaudited)

 

The Board noted that the Adviser has no affiliations with the Fund’s transfer agent, fund accountant, custodian, or distribution-related service providers utilized by the Fund and therefore does not derive any benefits from the relationships these parties may have with the Fund.

 

Conclusion

Having requested and received such information from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by the advice of independent counsel, the Board, including the Independent Directors, concluded that renewal of the Advisory Agreement was in the best interests of the Fund and its shareholders.

 

Consideration of the Sub-Advisory Agreement 

At the Meeting, the Board, including the Independent Directors, also considered the renewal of the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Adviser and Sub-Adviser. In its consideration of the Sub-Advisory Agreement, the Board considered information and materials furnished by the Adviser and the Sub-Adviser in advance of and at the Meeting and was afforded the opportunity to request additional information and to ask questions of the Adviser and Sub-Adviser to obtain information that it believed to be reasonably necessary to evaluate the terms of the Sub-Advisory Agreement. The Board received materials compiled by the Sub-Adviser and the Adviser, including a copy of the Sub-Advisory Agreement, the Sub-Adviser’s response to a questionnaire regarding its profitability, management and operations, a copy of the Sub-Adviser’s Form ADV, information regarding the Sub-Adviser’s compliance programs and information regarding the performance of the Fund’s benchmark indices and peer funds. The Board considered the following factors, among others, in reaching its determination to renew the Sub-Advisory Agreement: (i) the investment performance of the Fund and the investment performance of the Sub-Adviser, (ii) the nature, extent and quality of the services provided by the Sub-Adviser to the Fund, (iii) the experience and qualifications of the personnel providing such services, (iv) the costs of the services provided and the profits to be realized by the Sub-Adviser and any of its affiliates from the relationship with the Fund, (v) the extent to which economies of scale will be realized by the Fund as it grows, and (vi) whether the fee level of the Fund reflected the economies of scale to the benefit of the Fund’s shareholders.

 

The Directors relied upon the advice of independent legal counsel and their own business judgment in determining the material factors to be considered in evaluating the Sub-Advisory Agreement and the weight to be given to each such factor. The Directors’ conclusions were based on an evaluation of all of the information provided and were not the result of any one factor. Moreover, each Director may have afforded different weight to the various factors in reaching conclusions with respect to the Sub-Advisory Agreement. Although not meant to be all-inclusive, the following discussion summarizes the factors considered and conclusions reached by the Directors in the executive session and at the Meeting in determining to renew the Sub-Advisory Agreement.

 

 

Semi-Annual Report | December 31, 2023 63

 

 

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 
Consideration and Approval of Advisory and Sub-Advisory Agreements December 31, 2023 (Unaudited)

 

Performance, Fees and Expenses

The Board reviewed the performance of the portion of the Fund managed by the Sub-Adviser. The Board recalled its deliberations regarding the Fund’s performance while considering the renewal of the Advisory Agreement.

 

As to the comparative fees and expenses, the Board considered the management fee paid by the Fund to the Adviser and noted that the Adviser pays the Sub-Adviser from its fee, which the Board had previously determined was reasonable. The Board also compared the sub-advisory fee paid by the Adviser to the Sub-Adviser against the fees the Sub-Adviser charges other clients to manage similar strategies.

 

Nature, Extent and Quality of Services

As to the nature, extent and quality of the services provided by the Sub-Adviser, the Board considered that under the terms of the Sub-Advisory Agreement, the Sub-Adviser, subject to the supervision of the Board, provides to the Fund such investment advice as the Sub-Adviser, in its discretion, deems advisable and furnishes or arranges to be furnished a continuous investment program for the Fund consistent with the Fund’s investment objective and policies. The Board reviewed the Form ADV of the Sub-Adviser, which provided details regarding the experience of the Sub-Adviser’s investment personnel. The Sub-Adviser also provided additional information regarding its operations and experience managing other investment accounts. Based on the foregoing information, the Board, including the Independent Directors, concluded that the Sub-Adviser had provided quality services and would continue to do so for the Fund.

 

Profitability and Other Benefits

As to the cost of the services provided and the profits to be realized by the Sub-Adviser, the Board reviewed the Sub-Adviser’s financial condition. The Board noted that the financial condition of the Sub-Adviser was stable. The Board, including the Independent Directors determined that the Sub-Advisory Agreement and the compensation to the Sub-Adviser was reasonable and the financial condition of the Sub-Adviser was adequate. The Board noted that the Sub-Adviser had no affiliations with the Fund’s transfer agent, fund accountant, custodian, or distribution-related service providers and therefore does not derive any benefits from the relationships these parties may have with the Fund.

 

Conclusion

Having requested and received such information from the Adviser and Sub-Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Sub-Advisory Agreement, and as assisted by the advice of independent counsel, the Board, including the Independent Directors, concluded that renewal of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.

 

 
64 (888) 848-7569 | www.rivernorth.com

 

 

Board of Directors

Patrick W. Galley, CFA, Chairman

John K. Carter

J. Wayne Hutchens

David M. Swanson

Jerry R. Raio

Lisa B. Mougin

 

Investment Adviser

RiverNorth Capital Management, LLC

 

Sub Adviser

DoubleLine Capital LP

 

Fund Administrator

ALPS Fund Services, Inc.

 

Transfer Agent and

Dividend Disbursing Agent

DST Systems, Inc.

 

Custodian

State Street Bank and Trust Company

Millennium Trust Company

 

Independent Registered

Public Accounting Firm

KPMG LLP

 

 

RiverNorth Capital Management, LLC

360 South Rosemary Avenue, Suite 1420

West Palm Beach, FL 33401

 

Secondary market support provided to the Fund by ALPS Fund Services, Inc.’s affiliate ALPS Distributors, Inc., a FINRA member.

 

This report is provided for the general information of the shareholders of the RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. This report is not intended for distribution to prospective investors in the Fund, unless preceded or accompanied by an effective prospectus.

 

 

(b) Not applicable.
   
Item 2. Code of Ethics.
   
  Not applicable to semi-annual report.
   
Item 3. Audit Committee Financial Expert.
   
  Not applicable to semi-annual report.
   
Item 4. Principal Accountant Fees and Services.
   
  Not applicable to semi-annual report.
   
Item 5. Audit Committee of Listed Registrants.
   
  Not applicable to semi-annual report.
   
Item 6. Schedule of Investments.
   
(a) Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this form, and additional details are provided in the Schedule of Investments attached as Exhibit 13(c) hereto.
   
(b) Not applicable to the Registrant.
   
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
   
  Not applicable to semi-annual report.
   
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
   
(a) Not applicable to semi-annual report.
   
(b) None.
   
Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.
   
  Not applicable, due to no such purchases occurring during the period covered by this report.

 

 

Item 10. Submission of Matters to a Vote of Security Holders.
   
  There have been no material changes to the procedures by which shareholders may recommend nominees to the Board of Directors of the Registrant.
   
Item 11. Controls and Procedures.
   
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) are effective based on their evaluation of these controls and procedures, required by Rule 30a-3(b) under the 1940 Act, and Rules 13a-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this document.
   
(b) There were no significant changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
   
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
   
  Not applicable.
   
Item 13. Exhibits.
   
(a)(1) Not applicable to semi-annual report.
   
(a)(2) The certifications of the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(a) of the 1940 Act, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.CERT.
   
(a)(3) Not applicable.
   
(a)(4) Not applicable.
   
(b) The certifications of the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) of the 1940 Act, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT.
   
(c) The Schedule of Investments is attached hereto.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

 

By: /s/ Patrick W. Galley  
Name:   Patrick W. Galley  
Title: President  
     
Date: March 8, 2024  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By: /s/ Patrick W. Galley  
Name:   Patrick W. Galley  
Title: President  
     
Date: March 8, 2024  

 

By: /s/ Jonathan M. Mohrhardt  
Name:   Jonathan M. Mohrhardt  
Title: Treasurer and Chief Financial Officer  
     
Date: March 8, 2024