New Fund Launches
Four interval funds went effective on the first quarter of 2017:
Fund Name | Effective Date | Investment Strategy |
---|---|---|
Griffin Institutional Access Global Credit Fund | 3/30/2017 | Credit |
FS ENERGY TOTAL RETURN FUND | 3/8/2017 | Credit& Equity |
PIMCO Flexible Credit Income Fund | 2/9/2017 | Credit |
Nexpoint Opportunistic Credit Fund | 1/13/2017 | Credit |
For a complete listing of new fund launches, see Public Listing Update.
Griffin Capital and FS Investments will both be presenting on different panels at the ADISA 2017 Spring Conference. Topics include “Between Theory & Operations: A Practical Discussion of the Formation and Operation of Interval Funds” and “Running the Gauntlet: Interval Funds and the Due Diligence Process”. Highland Capital, an affiliate of interval fund sponsor Nexpoint Capital will also be at the conference.
Comparing BDCs and Interval Funds
With Financial Times coverage of closed end interval funds, and the recent growth in credit focused closed end funds, its a good time to compare the business development company structure to the closed end fund structure(including interval funds). Both provide investors with protections under the 1940 Act, and BDCs are also technically a type of closed end fund, but BDCs have several key differences in terms of fees, regulatory and filing requirements, and investment restrictions. These differences are important for investors, asset managers, and those involved in fund distribution.
Here are interactive tables comparing BDCs and Closed End Interval Fund:
PIMCO’s New Institutional Interval Fund
PIMCO Flexible Credit Income Fund an interval fund seeking to raise $1 billion, went effective on February 9.
The Fund’s strategy is true to its name: flexible asset allocation across a wide variety of global credit sectors including, corporate , mortgage, consumer, emerging market, and municipal credit. PIMCO will shift the allocation based on market conditions, valuation assessments, economic outlook, credit market trends , and other economic factors.
According to the Prospectus:
FS Investments Launches Fund With Magnetar Capital As Subadviser
FS Investments registered the FS Energy Total Return Fund on October 25. The fund will seek to raise up to $2 billion. The minimum initial investment for Class A and C shares will be $2,500, and the minimum investment for the institutional class I shares is not yet set. Class A Shares have a upfront commission, while Class C Shares have a no upfront fee, but instead have an ongoing servicing fee.
Magnetar Capital, which became famous for making massive profits during the financial crisis, will serve as the sub-adviser. Institutional Investor’s Hedge Fund Report Card ranked Magnetar as one of the top hedge funds in the world in 2015.
New Interval Funds in Registration
Two new interval funds were registered on October 19:
NorthStar/Townsend Institutional Real Estate Fund Inc , which will invest in commercial real estate and real estate debt.
Versus Capital Real Assets Fund LLC , which will invest in global infrastructure, timberland, and farmland.
For more interval funds in registration, or newly effective see Tools and Data