This is a high-risk investment, and assets may take a long time to buy and sell. Only invest if you can wait (possibly several years) to get your money back. You do not have protection against poor performance. Take 2 minutes to learn more
Long-Term Asset Funds
Reshaping private markets
LTAF offering tailored for retail investors
Diversification and growth opportunities away from public markets
Hold in a SIPP or Fund and Share account with a simple online process
Before you invest: Long-Term Asset Funds are considered high risk. It can be difficult to access your money in the short term and their value can go down as well as up so you could get back less than you put in. They are long-term investments that can be highly volatile and should only be a consideration for experienced investors with larger portfolios. We suggest they form a small part of a diversified portfolio. This isn’t personal advice, if you’re unsure if these are right for you, please consider taking advice.
Before you invest: Long-Term Asset Funds are considered high risk. It can be difficult to access your money in the short term and their value can go down as well as up so you could get back less than you put in. They are long-term investments that can be highly volatile and should only be a consideration for experienced investors with larger portfolios. We suggest they form a small part of a diversified portfolio. This isn’t personal advice, if you’re unsure if these are right for you, please consider taking advice.
What are Long-Term Asset Funds?
LTAFs are high-risk funds with a specialist structure designed to help investors hold often hard-to-deal private market assets while still providing regular intervals to buy and sell, often monthly or quarterly.
UK's first SIPP access to LTAFs
We are the first provider offering LTAF access to retail investors in a Self-Invested Personal Pension (SIPP).
Diversification
Access to non-listed assets with low correlation to public markets.
Exposure to alternative assets
Access alternative assets such as real estate, infrastructure and private equity.
Powered by Schroders Capital
We've partnered with Schroders Capital, one of the world's pioneers in private markets and an investment powerhouse to provide cutting-edge options. You'll pay lower fees through a dedicated share class designed to offer better value. LTAFs have the same ongoing platform charges as other traditional funds on the HL platform.
We're leveraging their rigorous research, innovative thinking and deep market perspective to help you build resilience and capture potential returns across public and private markets.
Partnership benefits for clients:
Pay less in ongoing fund charges thanks to a dedicated share class
Competitive ongoing platform fees versus typical private market access
A seamless digital journey and clear visibility of your investments
Are LTAFs right for me?
Long-Term Asset Funds are different to traditional funds and come with specific considerations.
LTAFs are considered high-risk investments and can be highly volatile. It’s difficult to access your money in the short term and their value can go down as well as up, so you could get back less than you put in. LTAFs are long-term investments and should only be a consideration for experienced investors with larger portfolios. We suggest they form a small part, no more than 10%, of a diversified portfolio.
Redemption limits, charges or refusals may be applied at the managers discretion if deemed in the interest of existing investors. A performance fee may also be included for managers who successfully generate positive investment returns.
Consider Long-Term Asset Funds if:
You've used the traditional investment options available to you and want more options to accommodate your growing wealth
You are an experienced investor and understand high-risk investments can be volatile and may take a long time to buy and sell
You're happy to invest for the long term – we suggest at least five to seven years
You're comfortable choosing your own investments and are happy to check in to make sure they're continuing to meet your objectives
This isn't personal advice. If you're not sure whether Long-Term Asset Funds are right for you, ask for financial advice.
Now available to trade
View available LTAFs by logging in and completing your self-certification.
LTAF charges
0.35%
Our account charge for holding investments is a maximum of 0.35%, and we charge £1.95 dealing to buy or sell funds online.
All LTAFs have a fund management charge and may have initial, performance and redemption charges.
How to deal LTAFs with HL
LTAFs are for more experienced investors with large, diversified portfolios able to take on more risk.
To buy, hold or sell LTAFs with us, you'll need to have an existing, or open a, Self Invested Personal Pension (SIPP) or Fund and Share Account.
If you choose to invest in the SIPP, money in a pension is not usually accessible until age 55 (57 from 2028).
Self-certify as an advanced investor who understands the complexities of LTAFs.
Before investing, check the investment criteria of the LTAF by thoroughly reading the prospectus, details of the charges, and other information.
You'll need to complete an appropriateness test to check these investments are right for you.
It's a completely digital process and should take around 10 minutes.
You'll need to have available cash in your account and, if using a SIPP, be aware of contribution limits.
Don't have a SIPP or Fund and Share Account with HL?
Discover LTAFs
Read more about HL's LTAFs.
LTAF FAQs
Here you'll find answers to the most frequently asked questions. If you have a question that's not listed, please contact support.
Those who can invest in LTAFs are as follows:
Certified high-net-worth individuals with an annual income in excess of £100,000 or net assets above £250,000 (excluding home or pension).
Certified and self-certified sophisticated investors.
They can typically invest up to 10% of their investable assets in LTAFs. Individuals may need to complete various eligibility checks to certify their suitability for LTAFs.
LTAFs can generate both capital gains and income for investors. You should check the LTAF's prospectus and key information to understand if or how any income will be distributed to investors. Income from LTAFs is generally subject to income tax.
Both the rate of capital gains and income tax will depend on your personal circumstances.
Investors will be able to buy into, or sell out of, the fund, at longer intervals than traditional open-ended funds which deal daily. A portion of an LTAF’s assets may, for example, be in listed assets which can be sold more quickly and where a price is more readily available.
The rest may be private assets which take longer to sell or liquidate. The mix and nature of the assets will determine how often investors will be able to buy or sell the fund.
LTAFs are designed as long-term investments, we recommend that LTAFs should be held for the long term, typically 5 to 7 years or more. Due to their illiquid investments, they have specific rules around exiting early. If you decide to exit early, you may get back less or more than you invested depending on the valuation it is sold at and any exit charges the fund may have.
LTAFs have specific rules around buying and selling as they need to maintain 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. This includes a 95-day minimum notice period for selling.
The specific notice period should be visible in the LTAFs prospectus and Key Investor Document (KID).
LTAFs are currently included under the Financial Services Compensation Scheme (FSCS) which provides compensation of up to £120,000 in the event that a regulated firm goes out of business. This does not cover poor investment performance.
A redemption fee is not automatically applied to your investment when you sell. A redemption fee exists as a discretionary charge which may be applied if there is sustained selling of units in the fund, forcing the fund manager to sell the underlying assets of the fund.
The redemption fee would be applied to the clients selling units in the fund to offset the impact of any dealing costs incurred with the sale of underlying assets. This is done to ensure that other holders of the fund are not adversely impacted. When it is applied, it is charged as a percentage of the value being sold and built into the price received.
You can check how this applies to specific LTAFs by thoroughly reading their prospectus, details of the charges, and other information.
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