Interval Funds

Sep 08. 18:17

White Paper Summary: Unlisted Closed-End Funds: Market Update Amid Building Momentum

Summary: white paper by FUSE Research Network and UMB Fund Services

  • Since their last survey in 2017, closed-end funds (CEFs) continue to grow with interval funds as the driving force. The top ten CEFs hold $30 billion in assets with a CAGR of 25% since 2014.

  • Since 2014, interval funds have grown AUM at an annual rate of 42.9% to end 2018 with $27.2 billion in assets. This change is reflected in the CEF marketplace where interval funds only represented 19.0% of the unlisted CEF marketplace in 2014; they comprised 51.5% of the marketplace as of the end of 2018.

  • 77% of financial advisors surveyed noted that interval funds were a major focus of product development initiatives in the coming year. The number of unique interval funds was expected to grow by 15 to 20 over that period.

  • The survey revealed the top three obstacles for advisers using interval funds:

    1. 1) Lack of a track record

    1. 2) Lack of liquidity

    2. 3) Fees and expenses


Source

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