Since the global financial crisis, fund managers have explored new vehicles, such as interval funds are unlisted closed-end funds with controlled liquidity, according to Morningstar.
Unlike traditional funds, shareholders can only sell shares at fixed intervals — usually every three, six or 12 months.
“By limiting liquidity on the redemption side, fund managers can access more private, illiquid opportunities than what they might be able to offer in a day-liquid mutual fund,” said Christian Clayton, PIMCO’s executive vice president of global wealth alternatives, as he joined the Big Picture in Practice to discuss interval funds.
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