The latest long-term asset fund (LTAF) launches in 2025 join the small but growing stable of investment offerings that use the new fund structure. The FCA registry now counts some 23 approved LTAF sub-funds and this is expected to grow in the years ahead.
Large asset managers dominate. Many of those entering the fray have an established presence in the defined contribution pension space. Their LTAFs can serve as a conduit to increase the unlisted exposure in the default pensions solutions they manage. This includes firms such as Aegon, Aviva, BlackRock, Fidelity, Legal & General, and Willis Towers Watson.
Of course, wealth markets are also in scope, and many LTAF offerings are structured in a way that is “wealth compatible”. Here, for any eventual plans to grow a direct retail presence, investment companies with variable capital (ICVCs) will prove to be a better fit than authorized contractual schemes (ACS), which are only available to professional accredited investors.
Overall, Schroders Capital is leading the charge when it comes to LTAF launches, with six approved LTAFs. It…
