What is a long-term asset fund (LTAF)?

The FCA’s rules for it came into force on November 15, 2021. Investors buy and sell units at net asset value, but an LTAF may not offer redemptions more often than monthly and must have a notice period of at least 90 days; the FCA says longer notice periods are likely to suit some LTAFs. Rules in force from July 3, 2023 made it a restricted mass market investment, opening it to a wider range of retail investors with added protections.

Say an investor asks on April 1 to redeem £100,000 from an LTAF with the minimum 90-day notice period. The notice runs to June 30, and the redemption is priced at the first valuation point after that. Simple example. Terms vary by fund.

It gives UK defined contribution pension schemes and some individual investors a regulated way into private markets, with withdrawal limits built for illiquid assets.