The Trendiest Investment on Wall Street…That Nobody Knows About
Among this year’s hottest investment ideas is one that even many of the people buying it have never heard of.
This peculiar vehicle is called an interval fund, and asset managers are using it to offer portfolios they might not be able to market otherwise. While such funds come with an admirable focus on holding assets for the long term, they also lock money up in ways many investors aren’t accustomed to.
In the first three quarters of this year, asset managers registered to sell $26.7 billion of interval funds, up 24% from the same period in 2015, estimates Robert A. Stanger & Co., a firm in Shrewsbury, N.J., that tracks non-traded securities.
Among them are funds that hold commercial real estate, timberland and farmland, online consumer loans, the debt of distressed or bankrupt companies, “catastrophe bonds” that are tied to risks like hurricanes or earthquakes, and other illiquid positions that seldom trade in the financial markets.
Unlike a conventional mutual fund, an interval fund is ideal for such assets, since purchasers can’t sell their shares back at will. Instead, an interval fund will cash you out only a few times a year — most often, quarterly.
You can download a PDF of this full article here: The-trendiest-investment-on-wall-street…that-nobody-knows-about (30 KiB)
Blue Vault’s Interval Fund and Nontraded CEF Review covers both interval funds and nontraded closed-end funds (CEFs). Strategies of these funds can range from real estate to hedge funds, so research on investment strategy is very important for this diverse set of alternative investments. The research covers key performance metrics, investment strategies and the associated investment managers.
The first IF and CEF Review will be available this November. Click here for more details.Go Back
The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.