Schroders has received approval from the Financial Conduct Authority to launch the first Long-Term Asset Fund.
LTAFs are open ended investment vehicles designed to allow a broad range of investors with longer-term horizons to invest in illiquid and private assets.
Following regulatory approval, Schroders Capital – the private assets division of Schroders – will focus on providing defined contribution and other eligible investors with access to its private asset investment capabilities.
Peter Harrison, group chief executive of Schroders, said he feels strongly that a wider range of UK savers must be able to take advantage of the returns and diversification benefits that investing in private assets can bring.
He said: “There are some great industries and firms which could be further supported by long term capital. The LTAF structure is designed to address this and I am delighted that the imminent launch of Schroders first LTAF, which is the first to be approved in the UK, will enable these companies to start benefiting from big pools of long-term capital and, in turn, help long term savers.”
The firm said private assets have the potential to help pension investors achieve their aims of a good outcome in retirement.
Tim Horne, head of UK Institutional DC at Schroders, commented: “The LTAF regime has been specifically designed to provide a regulated fund structure that provides a framework to invest into these assets. At Schroders we have been at the forefront of DC investment innovation and we are now focused on launching a private markets solution to best meet the needs of UK retirement savers.”
David Seex, head of Private Asset Solutions at Schroders Capital, added: “It is important for investors and their advisors to be clear as to the long term nature of private investments and when and how they will be able to access their funds. Key considerations should be the liquidity profile of their investment and how this fits with their investment horizon.”
