Schroders launches UK’s first Long-Term Asset Fund

The LTAF may be unfamiliar to many UK investors because the concept is new, but the requirement for this type of long-term vehicle has long been noted and now, supported by the Government and investment community, it is becoming a reality.

LTAFs offer long-term investors access to a wide range of assets, including private market investments, which have until now been available only to a minority of investors.

The goal is to foster long-term economic growth and drive more capital into unlisted UK companies and infrastructure. The LTAF will offer new investment opportunities and choice to a bigger group. The wider economy will benefit as LTAFs should also bring fresh capital into important new projects such as infrastructure. It replicates a similar initiative in the EU, where European Long-Term Investment Funds (ELTIFs) are being developed.

The LTAF will be an “open-ended” fund, meaning it can grow to accommodate new investor demand by issuing new “shares”. It will also enable investors to withdraw their money, by cancelling shares, according to agreed rules. The shares in the fund will reflect the value of the fund’s holdings.

Schroders is already a market leader in offering structures which provide greater access to private markets through its range of listed vehicles, as well as semi-liquid and illiquid structures.

Following regulatory approval to launch an LTAF in the UK, Schroders Capital - the private markets division of Schroders - will focus on providing other eligible investors with the opportunity to access the breadth of our private market investment capabilities.