Investing in Long-Term Asset Funds (LTAFs)
Making private markets accessibleThe Long-Term Asset Fund (LTAF) is an FCA authorised fund, which is open-ended, evergreen and specifically designed to provide a broader set of investors with the access to invest efficiently in private assets. LTAFs present a new opportunity for UK savers with longer-term horizons to invest in illiquid assets whilst retaining access to their investment.
Access the private markets opportunity set
Broadening the investment universe for savers looking to build their retirement pots.
Unlock growth potential
Harnessing the robust returns and diversification benefits that investing in private assets can bring.
Liquidity built in
An open-ended vehicle with appropriate liquidity mechanisms offering flexible entry and exit.
Bringing more of private markets to investors
Private assets, as part of a diversified investment strategy involving a range of assets, can bring improved risk return dynamics to a portfolio. Private markets give investors access to opportunities not available in public markets. By not allocating to this asset class, a huge investable universe - and accompaning diversification benefits - are missed.
Past performance suggests that private markets have outperformed public markets over the long-term, driven by the illiquidity and complexity premiums found in the asset class. While past performance is no guide to future returns, we believe the depth of the market and manager skill will continue to drive this trend.
How does an LTAF work?
LTAFs use innovative structures to provide flexible liquidity for investors who need buy to sell on an ongoing basis. For UK investors, the liquidity of LTAFs therefore falls between listed private asset investment companies (such as investment trusts which are daily tradable) and the more traditional limited partnership structures, which often come with a 10-year minimum lock-up.
LTAF rules establish that there should be consistency between the liquidity of a fund’s assets and its redemption terms. This is to align the amount of notice investors must give to redeem their investments and the liquidity of the underlying portfolio.
Schroders Capital - your private markets investment partner
Picking the right provider to invest in private markets is important. As the market leader in LTAFs, Schroders Capital has a first mover advantage having launched Schroders Capital Climate+ LTAF & Schroders Greencoat Global Renewables+ LTAF.
We have extensive experience, breadth and knowledge of investing in private markets, having been investing in long-term funds for many years.
While private assets investments offer potentially significant capital returns, funds and companies may face business and financial uncertainties. There can be no assurance that their use of the financing will be profitable to them or to any Fund. Investing in private asset funds and unlisted companies entails a higher risk than investing in companies listed on a recognised stock exchange or on other regulated markets.
Climate+
Schroders Capital Climate+ LTAF is a multi-private asset portfolio with a focus on climate and social impact.
Our innovative Climate+ strategy aims to contribute positively to climate change and support the transition towards net zero economies throughout its investments. By building and operating a diversified portfolio across private markets asset classes and sectors focused on climate and social related themes, the strategy aims to facilitate the transition to a more sustainable future.
Renewables+
Schroders Greencoat Global Renewables+ LTAF is a global portfolio of renewable energy and other energy transition-aligned infrastructure assets, with a sustainable objective of contributing to a net zero future.
Coming soon
Schroders Capital to launch a UK venture and growth LTAF with £300 million awarded by the British Business Bank and Phoenix Group.
Contact our team - Defined Contribution
Find out more about our range of funds, strategies and solutions by contacting your Schroders representative