Recently there was a Great article by Maks Financial Services on Seeking Alpha.
The whole piece is worth reading, but here is one of our favorite quotes:
“Rather than think of interval funds as mutual funds with limited liquidity, you can view certain intervals as hedge funds with more transparency.”
A common complaint is the lack of data on interval funds. Consequently broker-dealers and RIAs never take the first step to invest. Interval Fund Tracker is building tools to bridge this knowledge gap. The Active Funds page contains a sortable and searchable directory of currently active publicly registered closed-end interval funds. More tools for interval fund managers and investors are in beta mode. Here is a preview of the ten largest active interval funds based on net assets:
Interval fund is a fund structure that can be used to gain exposure to a wide variety of asset types. Multi Strategy Growth and Income Fund(MSFDX) summarizes it quite well on its website:
“Interval funds may include a wide range of investments and investment strategies, including listed, non-listed, public, and private investments. Some investments include equity real estate, commercial real estate loans, small- and middle-market loans, institutional funds, and private funds. The point is that through interval funds, individual investors who may not be able to directly access the underlying investments can invest in a portfolio of products typically reserved for institutions, endowments, and high-net-worth investors.”
Interval funds typically operate as a fund of funds, offering investors exposure to a diversified portfolio of alternative investments through one vehicle. Many major alternative investment managers, REIT and BDC sponsors have registered interval funds in recent months. A variety of regulatory and market pressures are driving the growth of interval funds, but lack of data makes it difficult for investors to evaluate choices. The purpose of Interval Fund Tracker is to increase transparency of the interval fund universe.