The open fund will be available domestically and through a Cayman Islands feeder fund for offshore investors. It has a $100,000 minimum and the firm is pushing it for the accredited investor audience, Faes said.
Domestically, the firm will distribute the fund directly to investors or through advisors, he said.
The fund will complement the fixed income portion of a portfolio, Faes said.
“We would hope that investors look at it as part of their conservative income basket in their portfolio,” he said.
Correction: The original version of this article incorrectly stated that the fund provides a guaranteed fixed 8.5% return. The specific return is not guaranteed. Also, the average amount of the short-term loans the funds invest in is an average of $300,000 and not $300 million as was stated. Financial Advisor regrets these errors.