City National Rochdale, a direct subsidiary of City National Bank – an affiliate of the Royal Bank of Canada, has launched the City National Rochdale Strategic Credit Fund (CNROX), a closed-end interval fund that seeks to raise $500 million. The fund will focus on the collateralized loan obligation market.
City National Rochdale has partnered with CIFC Asset Management LLC, a New York-based collateralized loan obligation manager that focuses on credit research, to act as the fund’s sub-advisor.
Shares are initially priced at $10.00 each. There is no sales load, but expenses include a 1.5 percent management fee and 0.25 percent service fee. City National Rochdale has agreed to waive its management fee or reimburse expenses so that the fund’s total annual operating expenses will not exceed 1.95 percent.
“We have a successful history with this asset class, which may provide investors with better returns and diversification through a broader credit spectrum and is therefore an enhancement to traditional asset categories as part of a diversified portfolio,” said Matthew Peron, chief investment officer for City National Rochdale, which manages more than $38.4 billion in assets.
City National Rochdale is also invested in the collateralized loan obligation market through the City National Rochdale Fixed Income Opportunity Fund (RIMOX), a multibillion-dollar opportunistic income fund.
With $50.3 billion in assets, City National Bank provides banking, investment and trust services through 72 offices, including 19 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City, Nashville, Atlanta, Minneapolis and Washington, D.C. In addition, the company and its investment affiliates manage or administer $67.5 billion in client investment assets.