Schroders has secured regulatory clearance from the UK’s Financial Conduct Authority (FCA) to introduce its first long-term asset fund (LTAF) in the country.
LTAFs, which are regulated open ended investment tools, aim to provide investors with long term investment opportunities in illiquid and private assets.
They could play a significant role in the UK wealth market in future, once FCA finalises its views after concluding the ongoing consultation on widening access to LTAF to retail investors.
The latest approval enables Schroders’ private assets arm Schroders Capital to provide defined contribution (DC) and other investors with access to the firm’s private asset investment offerings.
Schroders Capital, which had $91bn of assets under management at the end of last year, offers several private asset investment options across various sectors, including real estate, private equity and infrastructure.
Schroders group CEO Peter Harrison said: “We feel strongly that a wider range of UK savers must be able to take advantage of the robust returns and diversification benefits that investing in private assets can bring.
“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 latest move comes shortly after Schroders Personal Wealth (SPW) selected AI fintech firm Aveni to enhance its compliance capabilities.