Interval funds are a type of investment fund that combines some characteristics of open-end mutual funds and closed-end funds.
Like mutual funds, interval funds allow investors to buy and sell shares at the net asset value (NAV) of the fund. This NAV is calculated at the end of each trading day based on the value of the underlying assets. But, unlike traditional mutual funds, interval funds only offer periodic liquidity (which allows for strategies that can reduce volatility), typically quarterly or semi-annually, where investors can redeem their shares.
Interval funds typically invest in illiquid assets such as private equity, real estate, or debt securities that are not traded on public exchanges. Due to the illiquidity of these assets, interval funds are structured to limit the frequency of redemptions, and the redemption price may be different from the NAV of the fund.
Interval funds are subject to various regulatory requirements, including limitations on the amount of illiquid assets they can hold and the frequency and amount of redemption offers.
These regulatory requirements are intended to protect investors and ensure that the fund maintains sufficient liquidity to meet redemption requests.
Investors should carefully review the prospectus of an interval fund before investing to understand the fund's investment strategy, fees, liquidity terms, and risks
If you’re interested in learning more or have questions about investing in Interval funds, please reach out!
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
An investment in interval funds involves risk, including loss of principal.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. AN OFFERING IS MADE ONLY BY A PROSPECTUS. THIS LITERATURE MUST BE READ IN CONJUNCTION WITH A PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF SECURITIES TO WHICH IT RELATES. A COPY OF A PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH AN OFFERING.