FYI: The interval fund, an old product, is gaining new traction among fund managers.
Created in the 1990s, these funds provide access to illiquid assets as investors turn toward private markets–such as direct lending, private equity, and real estate–that don’t lend themselves well to the daily liquidity of mutual funds.
Moms and pops have long been denied the fancier tools that accredited investors can use. “Liquid alternatives”—hedge fund strategies in mutual fund baskets—were supposed to fix that, but they have disappointed. Interval funds can be redeemed like a mutual fund, but only monthly or quarterly. That longer lockup means that they are better suited to invest in things that don’t trade as much.
That’s increasingly attractive to investors as return forecasts for more easily traded assets have dimmed. After stocks proved not so trustworthy in the financial crisis, and central bank stimulus helped compress yields, “alternative” investing went mainstream.
Regards,
Ted
https://www.barrons.com/articles/a-safer-way-to-invest-in-private-debt-1537561734
