Blackstone/GSO registered a new interval fund on June 30. The Blackstone/GSO Floating Rate Enhanced Income Fund intends to follow a familiar credit strategy, focused on floating rate loans in a rising interest rate environment. It may also invest 20% of assets into structured products, warrants/equity securities, and other related instruments. Blackstone’s interval fund will have […]
The SEC declared the registration statement effective for The City National Rochdale Select Strategies Fund（CNRLX ) on June 22, 2017. CNRLX is seeking to raise up to $500 million. This reinsurance fund focuses on insurance linked securities(ILS) and reinsurance space, and is structured as an interval fund. CNRLX will focus on reinsurance investments providing exposure […]
A key defining feature of an interval fund is that they are regulated under the 1940 Act. This provides critical protections for investors. DLA Piper released a handbook discussing the 1940 Act and related statues and regulations that apply to and otherwise bear on the interval fund operations. The information covers the key regulatory framework for 40 Act Funds, as well as the impact of recent regulatory changes.
According to DLA Piper:
….an interval fund can be a suitable vehicle in which to run “alternative” strategies – i.e., strategies that are designed to produce returns that are not highly correlated to the broader stock and bond markets. Interval funds also mesh well with certain noteworthy regulatory initiatives – for example, FINRA’s new customer statement rule (RN 15-02), and the Department of Labor’s fiduciary rule and accompanying BIC exemption – making them attractive vehicles for use by independent broker dealers and other financial advisors that must operate within the complex regulatory environment.
Additionally, Griffin Capital, which operates the Institutional Access Credit Fund, and the Institutional Access Real Estate Fund…
This regularly updated Research page provides the best interval fund research sources for asset managers launching closed end interval funds, and for investors considering using the interval fund structure to achieve asset allocation goals.
Topics covered include:
Background and Industry Research
Legal/Structure Guides
Fund Sponsor Research
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Most publicly traded interval funds do not trade on an exchange. Many people in the industry speak of interval funds as if they are always non-traded. However it is possible for an interval fund to be publicly traded. Currently, of the ~40 active or and recently launched interval funds, the Blackrock Enhanced Government Fund (EGF) is the only one that is publicly traded. Or put differently, of the >500 publicly traded closed end funds, EGF is the only one that is structured as an interval fund. It offers to repurchase 5-25% of its shares annually, and charges a repurchase fee of 2%. Since it is an interval fund, the repurchase plan can be suspended only with shareholder approval.