Chicago-based advisory firm XA Investments is set to expand its benchmarking platform with the launch of a dedicated sub-index focused exclusively on credit strategies. Scheduled to debut in the first quarter, the XAI Interval Fund Credit Index (INTVL-C) is designed to provide asset managers and investors with greater transparency and a more precise performance gauge for the rapidly growing alternative credit sector. 

The new index tracks 54 constituents, covering alternative credit non-listed closed-end interval and tender offer funds. The index captures a broad spectrum of credit allocations, including direct lending, asset-backed lending, structured credit, and multi-strategy approaches. 

“INTVL-C is instrumental in helping fund managers benchmark credit interval funds against a universe of similar peers,” said Kimberly Flynn, President of XA Investments. “Calculated on a total return basis, the sub-index provides fund managers a direct way to compare their funds against the most comprehensive interval fund credit index of over 50 credit interval and tender offer funds.” 

XA noted that the sub-index incorporates credit-focused factors such as distribution reinvestments and net total return calculations, ensuring fairer comparisons across funds with similar structures and liquidity features. The index’s top constituents represent many of the industry’s leading credit managers, including Cliffwater, CION, Carlyle, PIMCO, Lord Abbett, Variant, Stone Ridge, Apollo, and Federated Hermes. 

The new product builds upon the main XAI Interval Fund Index, which currently tracks 93 funds with more than $100 million in net assets across diverse categories, including real estate, hedge funds, and private equity. According to the firm’s website, the broader index has delivered an annualized return of 6.92% through December 29.