Fund Launch

Interval funds are increasing in popularity among institutional investors and RIAs.  One way to see this is to analyze the sales charge levels across available interval fund share classes:

(Premium members can view an interactive version of this chart, and download the underlying data)

The majority of available share classes currently in the market have no sales charge at all.  Less than a third of actively distributed share classes have sales loads above 4%. Consequently, RIAs have been quicker to embrace interval funds than broker dealers.

Interval Fund Sales Charges and AUM

The story is even more extreme when you look at where interval funds assets are concentrated.

The largest interval funds are raising capital exclusively from institutional investors and RIAs. The three active Stone Ridge funds, which together account for 45% of interval fund net assets, do not have any sales charge. The two Versus Capital funds, which together account for 12% of net assets, also do not have any sales charge.

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On July 26, 2017, Pathway Energy Infrastructure’s board of directors approved the Company’s plan to convert to an interval fund. The change of this fundamental policy will be submitted to shareholders for a vote in a forthcoming proxy. The Company is also making adjustements to its investment strategy to focus on broader infrastructure opportunities. The new Company name will be “Pathway Capital Opportunity Fund.” Shareholders will need to vote on the change in an investment strategy as well. Details on the new structure and strategy are included in a draft registration statement