Interval Fund Registrations Set a Record Pace

In the first four months of 2021, eight new interval funds filed with the SEC.

This sets the stage for big year. Based on seasonal patterns in fund filings, 2021 is on pace to set the all-time record for new interval fund registrations. This complements a clear trend from the last decade: the number of interval funds is exploding.

Based on the month-by-month distribution of past filings, we expect to see about 70% of each year’s new interval funds filed after April. If this patten holds, we expect to see a record 25 new interval funds filed in 2021.

The recent popularity of interval funds comes as investors increasingly seek premium yields and alternative asset exposure. An overvalued equities market and rock-bottom interest rates make interval funds’ low market correlation and liquidity premium more and more attractive to asset managers and retail investors alike. 

Keep an eye out for similar upward movement on the total assets under management in interval funds.