The Month in Interval Funds: April 2021

THE MONTH: APRIL 2021

HIGHLIGHTS

· Three new interval funds were registered in the month of April

· Diverse investment strategies: global credit, real estate, and “special situations”

· Registrations come from two management incumbents and one newcomer

In April, the U.S. economy continued its meteoric rise as the weather warmed, 43 million Americans received a COVID-19 vaccine, and the unemployment rate fell to 6%. The S&P 500 rose 161.3 points, the Nasdaq rose 415 points, and consumer sentiment rose 4%.

Also on a rise: the number of registered interval funds. The sector saw its biggest month of 2021, with three new funds in April alone. This represents a 3.2% increase in the number of active or recently filed interval funds, bringing the total to 96.

Here’s the rundown on the new funds:

· BNY Mellon Alcentra Opportunistic Global Credit Income Fund: this fund, which will be managed by BNY Mellon with Alcentra as a sub-investment advisor, focuses on a variety of credit instruments across global markets. The fund targets high current income and capital appreciation, and it’s currently slated to offer only institutional shares. Read more.

· Thirdline Real Estate Income Fund: this fund is managed by Thirdline Capital Management, which was formed in April and currently has no assets under management. The fund will focus its holdings on real estate securities and direct investments, with the goal of providing high current income with low correlation to other markets. The fund currently plans to offer shares of beneficial interest. Read more.

· Lord Abbett Special Situations Income Fund: this fund is managed by Lord Abbett, and it targets both income and capital appreciation. The fund’s strategy focuses on debt securities linked to “special situations” – bankruptcies, litigation, mergers, and other corporate stressors. The fund plans to offer three share classes: I, A, and U. Read more.

OUR FAVORITE ARTICLES FROM APRIL:

· The SEC’s Fraternal Twins: Comparing Interval Funds & ETFs

· The Top Five Advantages of Interval Funds

· NAV-igating Value: How Interval Fund Share Price is Calculated