The UK’s Long-Term Asset Fund (LTAF) is not proving popular, with the Financial Conduct Authority not receiving any applications for the hybrid structure since its launch in November 2021.

In response to a Citywire freedom of information request the City watchdog said it had not received any applications for the LTAF and therefore not approved any funds or individual businesses.

The LTAF was launched as a more flexible but still open-ended vehicle to attract more capital into illiquid assets such as property and debt. This was while rules were being introduced to minimise risks associated with holding illiquid assets in what are supposed to be liquid, daily priced funds.

The vehicle is currently open only to sophisticated investors. However, the FCA this week announced the launch of a consultation, which closes on 10 October, to extend it to retail investors.

The reaction to the launch of the new structure was mixed, with some wealth managers telling Citywire they did not see the point of investing in an LTAF when closed-end investment trusts already do the job.

Ben Conway, head of fund management at Hawksmoor, questioned at the time whether the LTAF, which can impose constraints on dealing for up to six months, would actually be able to address the liquidity mismatch.

There have not been any applications for the LTAF yet, but that does not mean asset managers aren’t working on it. Previously, Partners Group and Schroders told Citywire they were looking into launching an LTAF.