Aviva Investors Receives Approval To Launch LTAF

The firm did not disclose the underlying assets of the fund, but said it is looking forward to "providing further details in due course". 

Schroders Capital was authorised by the FCA to launch the first LTAF on 9 March, as the regulator pushes through with plans to widen investment in long-term private assets to a broader investor base, primarily defined contribution schemes. 

Schroders to launch UK's first LTAF following FCA approval

The LTAF launched by Schroders on Wednesday (29 March), named Schroders Capital Climate+ LTAF, is designed to help UK defined contribution pension funds support the net zero transition.

The strategy will allocate to infrastructure, real estate, private equity, natural capital and biodiversity-focused assets, via a mix of Schroders Capital and externally-managed funds.

Investment Week understands that BlackRock is among other asset managers that have applied to launch an LTAF in the UK, after Schroders became the first firm to apply for the new structure. As of 5 January, three firms have sent a formal application. 

Schroders Capital unveils UK's first LTAF

West Lockhart, head of BlackRock's EMEA Wealth business, said: "We are excited about the increased sophistication of alternatives in defined contribution schemes.

"Within a robust risk framework, access to illiquid alternatives could help deliver diversification and resilient returns, and we believe this could lead to better outcomes for members. In our view, with education, the LTAF is the right vehicle to achieve this."

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