Mutual Fund Spotlight: River Canyon Total Return Bond Fund [RCTIX]
By: Ted Black, CFP©
Summer 2025 (Vol. 43, No. 2)
The River Canyon Total Return Bond Fund is managed by River Canyon Funds, a subsidiary of Canyon Funds. With more than three decades of credit investing, the firm has a long history of applying intensive credit analysis as it seeks to identify value in the fixed income markets. The objective of this fund is to maximize total return via income and capital appreciation.
This fund’s investment team relies upon its specialized knowledge and experience to navigate credit and interest rate cycles. The team is led by Sam Reid. Mr. Reid has extensive experience in the fixed income markets, and has been with the firm since 2008.
Fixed income securities with a likelihood of outperformance across a wide range of macroeconomic and market scenarios are the primary investment focus of this fund. This strategy is designed to provide investors with exposure to securities and sectors that have historically low correlation to traditional asset classes.
The benchmark for which this fund is compared to is the Bloomberg U.S. Aggregate Bond Index, a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. Investors frequently use the index as a stand-in for measuring the performance of the US bond market. This fund has an outstanding record of outperforming the index over both the short and long term.
As of the close of the second quarter, the fund’s largest holdings include corporate debt at roughly 32% of the portfolio, Asset Backed Securities (ABS) (Asset Backed Securities are created when a company sells its loans or other debts to an issuer, a financial institution that then packages them into a portfolio to sell to investors) at 28%, and Residential Mortgage-Backed Securities (RMBS) at 21% of the portfolio. This fund has a current yield of 7.82% and pays its dividend on a monthly basis.
For many investors, in an effort to generate regular income and limit overall volatility, having a portion of their portfolio invested in high quality bond offerings is standard practice.
Performance annualized and updated through 08/01/2025:
1-Year: +8.52%; 3-Year: +7.62%; 5-Year: +5.73%.
The gross annual expense ratio is 0.67%.
If you’re interested in this fund, or would like a portfolio review to determine if this fund might be an appropriate addition to your portfolio, please call Ted Black, CFP© at 888-878-0001, extension 3.
Statistics and information provided by Morningstar and River Canyon Funds. Please visit the River Canyon Funds website at www.rivercanyonfunds.com for the most recent performance information. The principal value and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns shown, unless otherwise indicated, are total returns, including any capital gains or losses and all dividend and capital gains distributions. The performance data quoted represents past performance and in no way guarantees future results. Mutual funds are not FDIC insured.
Mutual funds are sold by prospectus. An investor should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. Please contact our office at 888-878-0001 to obtain a prospectus. Please read the prospectus carefully before you invest or send money.
Advisory services offered through Royal Palm Investment Advisors, Inc., a Registered Investment Advisor.