Company: RIV
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017710
Chunk: 1

Company: RIVERNORTH OPPORTUNITIES FUND, INC.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 1
---
 at least one rate cut – and potentially as many as three –
by year-end 2025, though long-end yields remain elevated. Why does this matter?

As we’ve emphasized before, closed-end funds
(“CEFs”) are highly sensitive to current interest rate levels and expectations. A flat or inverted curve puts pressure on
funds using floating-rate leverage, where borrowing costs potentially exceed income from longer-term investments. As the yield curve has
flattened/re-steepened, our view is that sentiment around CEFs has improved. We believe that market volatility, discount dynamics, and
an elevated interest rate environment continue to drive investor behavior—and present opportunity.

The RiverNorth Opportunities Fund, Inc.’s (the
“Fund’s”) fixed-rate, perpetual preferred security issued in April 2022 remains a differentiator amid a rising-rate
environment. With a 6% fixed cost of leverage, the Fund has avoided the full brunt of rising short-term rates that have challenged many
peers.

Performance for the fiscal year ended June 30, 2025,
was strong. On a net asset value (“NAV”) basis, the Fund returned 11.88%, while the market price total return was 13.40%.
The Fund’s discount narrowed modestly during the period and ended the fiscal year at approximately -2.0%.

Equity-oriented CEFs were among the top contributors,
particularly as broader equity markets rallied. Our allocation to special purpose acquisition companies (“SPACs”)—which
increased over the year to 25% of assets —also delivered meaningful, positive performance. We view SPACs as a way to earn “cash
plus” returns with downside mitigation and the potential for additional upside through the ownership of SPAC warrants and/or a positive
price pop on an announced acquisition that the market views favorably. Investment company debt, including business development company-issued
bonds, performed well, offering attractive coupons while experiencing modest spread tightening. Opportunistic trading and timely risk
management decisions also helped returns.

The only real laggard this year was the Fund’s
allocation to municipal CEFs. While discounts narrowed, net asset values declined, resulting in a roughly flat contribution overall. Further,
our short hedges (i.e. short equity exchange-traded funds) detracted slightly from returns over the year.

Looking at the portfolio at fiscal year-end, the Fund
held 46% in CEFs trading at a weighted average discount of -11