The folks at a $1-billion-AUM* ETF boutique are taking over a transforming, 19-year-old fund-of-ETFs-and-closed-ended-funds from a familiar, $4.9-billion-AUM** asset manager.

Michael Norman "Mike" Loukas TrueMark Investments, LLC Principal, CEO

Last week, Mike Loukas, CEO of TrueMark Investments [profile], and Patrick Galley, CEO and chief investment officer of RiverNorth Capital Management [profile], confirmed that the RiverNorth Core Opportunity Fund, an open-end mutual fund, has reorganized into the new RiverNorth Active Income ETF (CEFZ on the Cboe BZX). Chicago-based TrueMark Investments, LLC now serves as investment advisor to CEFZ, succeeding West Palm Beach, Florida-based RiverNorth Capital Management, LLC. Yet RiverNorth is staying on as subadvisor to the successor ETF.

The RiverNorth mutual fund's board approved the transformation plan on April 23, 2025, pending shareholder approval. The reorg then took effect on August 1, and the new CEFZ listed on August 4.

The transformation brings some lower fees for the $35.64-million-AUM*** fund's shareholders, specifically drops of 69 basis points and 95bps (depending on the share class). The predecessor mutual fund came in two flavors:

I shares (RNCIX), with an expense ratio of 405bps and requiring a minimum initial investment of $100,000; and

R shares (RNCOX), with an expense ratio of 431bps and requiring a minimum initial investment of $5,000.

In contrast, CEFZ comes with an expense ratio of 336bps.

Galley and Stephen O'Neill, portfolio manager at RiverNorth, are staying on to PM CEFZ. O'Neill joined the predecessor fund's PM team in 2008, and Galley had PMed the predecessor fund since its inception on December 27, 2006.

Some fundsters may not be surprised by this new RiverNorth-TrueMark team up, as the firms have another connection going back several years. This fund transformation comes about four years after RiverNorth, then still based in Chicago, bought a minority stake in TrueMark, with plans to launch RiverNorth-powered TrueShares ETFs.

This MF-to-ETF conversion is part of the RiverNorth team's "ongoing efforts to enhance the investor experience, according to Galley.

"Through our partnership with TrueMark, the transition allows us to deliver the same opportunistic, actively managed strategy with the added benefits of greater transparency, liquidity and tax efficiency provided by the ETF structure," Galley states.

Loukas notes that the launch of CEFZ is TrueMark's "first ETF conversion from an existing mutual fund structure."

"We are delighted to bring RiverNorth's distinguished, CEF-centric investment strategy to those investors and advisors gravitating to the ETF structure," Loukas states.

The CEFZ transformation includes several other provider changes, too:

Paralel Distributors LLC serves as the new ETF's distributor, succeeding the mutual fund's distribution, SS&C's Alps Distributors, Inc.;

Paralel Technologies LLC serves as CEFZ's fund accountant and administrator, succeeding Alps Fund Services, Inc.

State Street serves as the ETF's transfer agent, succeeding Alps Fund Services; and

Thompson Hine LLP serves as CEFZ's counsel, succeeding Faegre Drinker Biddle & Reath LLP.
Meanwhile, State Street is staying on as the new ETF's custodian, after doing the same for the open-end fund, and Cohen & Company, Ltd. is staying on as independent accounting firm.

*As of May 2025.

**As of June 30, 2025.

***As of yesterday (August 11, 2025).

Editor's Note: A prior version of this story gave the wrong age for the transforming RiverNorth Core Opportunity Fund. To clarify, the fund was about 19 years old. 

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