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UMB Fund Services and FUSE Research Network Announce Fourth Annual Report on Unlisted Closed-End Funds

Unlisted closed-end fund (CEF) assets under management (AUM) have grown by double-digit percentages in each of the past three years. More impressively still, unlisted CEFs appear set for another year of gains, despite the pandemic’s disruption of the economy and fund industry. UMB Fund Services partnered with FUSE Research Network to publish a fourth -annual comprehensive report on unlisted CEFs.

The report examines what’s driving asset growth in unlisted CEFs—and whether that growth is likely to continue despite Covid-related challenges, which include significant outflows in other parts of the broader fund industry.

Access the PDF and Webinar

Watch our webinar highlighting the report’s findings, hosted by UMB Fund Services and FUSE Research Network below.

Key Findings from the 2020 Report

  • Interval funds are fast becoming the preferred unlisted CEF structure. Market share has grown from 19% at year-end 2014 to 53% as of March 2020. Interval funds are also the focus of product development, accounting for 84% of product launches over the last three years.
  • Strategies focused on accredited investors continue to account for the majority of unlisted CEF assets with 61% market share.
  • Unlisted CEFs are an emerging product structure with $62B in AUM as of March 2020. Product manufacturers will need to actively market their products to manage reservations about the overall structure (limited liquidity, fees, track records).
  • Growth of unlisted CEFs has been impressive. During the last three years, the number of unlisted CEFs grew at an annual rate of 19%, 12% and 22%, respectively. Over that same span, nearly 50 unlisted CEFs were launched—and 40 remain .
  • Many unlisted CEF strategies are complex mandates, requiring an ongoing sales and marketing effort from asset management firms. With a concerted commitment to messaging and education, we believe unlisted CEFs will continue to proliferate.

About the Report

The UMB / FUSE Research Network report is the most comprehensive look at unlisted CEFs in the industry. The report provides insights and data on the number of unique funds and assets; top funds and firms; a market update and outlook; advisor use trends; and a manager spotlight.

UMB Fund Services has more than 20 years of experience servicing these funds, and our partnership with FUSE Research Network allows us to not only educate our clients, but the entire industry, as these products continue to gain popularity.

UMB Fund Services is a national leader with decades of experience in registered and alternative investment fund servicing. Visit our website to learn how UMB Fund Services can support your firm, or contact us to be connected with a fund services team member.

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