Princeton-Advised Ellington Interval Fund to Liquidate $37.6M Portfolio
Ellington Income Opportunities Fund, a $37.6 million structured-credit interval fund sub-advised by Ellington Global Asset Management, will liquidate after its board of trustees determined that winding down is in shareholders’ best interests.
Effective immediately, the fund will not accept any new purchase requests, will not pursue its stated investment objective of total return through capital gains and current income, and has terminated its expense limitation agreement with its investment adviser, Princeton Fund Advisors LLC. The board has adopted a plan of liquidation under which the adviser and sub-adviser will seek to convert the portfolio to cash through redemptions of underlying fund holdings and secondary market transactions.
The fund cautioned that a complete liquidation may take several months. As of March 31, 2026, approximately 26.3% of net assets were classified as Level 3 securities – holdings for which market quotations are not readily available and which are valued using broker-dealer indicative valuations and proprietary models. The fund held approximately $37.6 million in total net assets at that date.
The fund’s portfolio as of March 31 was concentrated in asset-backed securities, which represented approximately 70.6% of net assets. Residential mortgage-backed securities accounted for the largest subcategory at 28.2% of net assets, followed by collateralized loan obligations at 16.0% and aircraft lease ABS at 8.5%. The fund also held corporate debt, preferred stock of mortgage real estate investment trusts, and interest rate swap positions.
During the liquidation, the fund will continue to strike a daily net asset value per share, distribute required shareholder reports, and report periodically on the progress of the wind-down. Shareholders do not need to take any action at this time, the fund said.
The fund offered Class A shares at NAV plus a maximum sales charge of 5.75% and Class M shares at NAV, distributed through broker-dealers and registered investment advisers. As an interval fund registered under the Investment Company Act of 1940, it had offered quarterly repurchases of at least 5% of outstanding shares.
The liquidation will be a taxable event for shareholders subject to U.S. federal income tax. Shareholders will generally recognize capital gain or loss equal to the difference between their liquidating distributions and their basis in fund shares. The fund advised shareholders to consult their tax advisers.
Princeton Fund Advisors managed approximately $7.9 billion in assets as of Dec. 31, 2025. Ellington Global Asset Management, the sub-adviser, is an affiliate of Ellington Management Group, a Greenwich, Connecticut-based investment manager founded in 1994 by Michael Vranos and focused on structured credit and mortgage-related strategies. The fund launched in November 2018 with Class M shares, with Class A shares commencing in December 2019.
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