Glossary · UK
What is Long-Term Asset Fund (LTAF)?
An FCA-authorised UK fund structure designed to let investors, including through pensions, hold illiquid assets like infrastructure, private equity and property more easily.
Full Definition
The Long-Term Asset Fund (LTAF) is a UK regulatory fund structure, introduced by the FCA in 2021, specifically designed to hold illiquid or hard-to-trade assets — such as infrastructure projects, private equity, venture capital, private credit and direct property — in a format compatible with longer notice periods for withdrawals (rather than the daily dealing that traditional open-ended retail funds promise but can struggle to deliver for illiquid holdings, as seen in past property fund suspensions). LTAFs were originally aimed mainly at institutional and sophisticated investors, but rule changes have progressively widened access, including allowing LTAFs to be held within defined contribution workplace pension schemes and, more recently, within Stocks & Shares ISAs, as part of a wider government push to channel more UK pension and retail savings into long-term productive assets such as infrastructure and growth companies. Because LTAFs typically impose notice periods of weeks or months before money can be withdrawn, they suit long-term savings like pensions far better than money that might be needed at short notice.