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ARK to Offer Interval-Funds

edited February 2022 in Other Investing
Interval-funds are not listed, can be bought any tine, but redemptions are limited in amounts to quarterly, semi-annual or annual windows. There are about 70 such funds now. A good analogy is to "roach-motels". A filing has been made for ARK Venture Fund.
Interval-funds try to address some issues related to mutual funds/OEFs (constant inflows/outflows), ETFs (liquid wrapper for some illiquid assets) and CEFs (premiums/discounts).
https://www.morningstar.com/articles/1080000/ark-invest-turns-to-an-innovative-fund-structure
SEC/Edgar https://www.sec.gov/Archives/edgar/data/1905088/000110465922011382/tm225314d1_n2.htm

Comments

  • I think interval funds make sense in theory, but are often abused in practice. Someday a money manager is going to offer a truly low cost, unlevered well-managed interval fund that invests in illiquid assets that suit the structure. But most of the ones I've seen are overpriced and overlevered, high expense ratios, too much risk and low liquidity. It's a shame as I like the structure for getting access to asset classes that don't trade all the time.
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