Tags: Interval | Funds | Higher | Yielding | Securities

Interval Funds Can Offer Everyone Higher Yielding Securities

Image: Interval Funds Can Offer Everyone Higher Yielding Securities
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By    |   Tuesday, 02 May 2017 03:25 PM

For investors looking for higher yielding investments but concerned about security, interval funds are a great opportunity.

Originally reserved for the wealthiest in America, this new kind of closed end fund structure allows everyone to participate in more sophisticated, higher yielding opportunities.

Interval funds are ideal for any investor seeking more lucrative long-term strategies.

Liquidity provisions present sophisticated strategies

Interval funds allow you to invest in higher yielding, stickier asset classes, because of their liquidity requirements. Investors have the ability to redeem shares at specific times, usually quarterly. This gives interval funds the ability to participate in longer-term opportunities, unlike mutual funds.

Many interval funds focus on structured credit or private loan opportunities, giving investors access to a higher yielding, non-correlated, income generating portfolio. These kinds of investments are normally reserved for accredited investors, as they have high minimum requirements. But interval funds tear down this barrier, giving non-accredited investors access to asset classes denied to them in the past.

High yield does not mean less security

Interval funds come with the same public oversight and transparency that covers the activity of any public company. By calculating NAV daily, investors can take comfort in seeing the value of the portfolio every day. Since many interval funds invest in private companies, or non-market priced assets, valuation of securities is crucial. You should look for interval funds that use third party valuation companies to ensure transparency and accuracy of valuations.

Although some investments can be quickly eroded by adverse market conditions, interval funds are not as susceptible to swings in the market. This reduces the risk of loss while ensuring the long-term protection of investments. Greater resilience to fluctuations in financial markets also reduces the need for the same micromanagement that other investments require. This can encourage everyone, even non-accredited investors, to rely on interval funds to increase their incomes.

Interval funds are gaining popularity on Wall Street, but interval fund managers and advisors should always be vetted prior to any investment. This ensures that you are investing in a safe and transparent portfolio of high yielding securities. It all boils down to how the company sources and structures their opportunities to reduce the potential risks inherent in higher yielding securities.

Interval funds can improve everybody’s finances

In a volatile market, everyone should consider adding an interval fund to their portfolio. They diversify your exposure in the equity markets, while generating income from a higher yielding asset class. They can also increase your income without placing you at the mercy of a volatile market.  After being monopolized by the wealthy for decades, investing in interval funds should be a priority for new and experienced investors alike.

Cole Reifler is the president at Forefront Capital Advisors. He spearheads the marketing and branding of the firm's specialty finance products. 

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For investors looking for higher yielding investments but concerned about security, interval funds are a great opportunity.
Interval, Funds, Higher, Yielding, Securities
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2017-25-02
Tuesday, 02 May 2017 03:25 PM
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