Navigating Interval Funds

Bringing Alternative Strategies to the Mass Affluent Market

The interval fund is a pooled investment vehicle registered under the Investment Company Act of 1940. Similar to open-end mutual funds, interval funds provide for the continuous sale of shares across several distribution channels, including retail, with the portfolio management flexibility of closed-end funds. Interval funds typically employ sophisticated strategies that include illiquid assets – strategies that otherwise might be available only to institutional investors. Interval funds limit the frequency and size of redemptions by investors to a set percentage of the portfolio offered at regular periodic intervals. This drives long-term investment discipline for both the portfolio manager and investor.