AIC responds to launch of long-term asset funds on Hargreaves Lansdown
Investment trusts already offer access to private markets.
The Association of Investment Companies (AIC) has responded to today’s news that Long-Term Asset Funds (LTAFs) will be available through the retail investor platform, Hargreaves Lansdown.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “The launch of the Long-Term Asset Fund to retail investors has been heralded as a milestone, giving these investors access to private markets for the first time. But this is wrong – investment trusts have been giving retail investors access to private markets for decades.
“The investment trust structure has been tried and tested through challenging market conditions, and allows investors to buy and sell easily by trading shares on the stock market. In contrast, LTAFs limit redemptions, with minimum notice periods of 90 days and restrictions on how much can be redeemed.
“Clearly, different structures have their strengths and weaknesses, but to ignore investment trusts as a way of accessing private markets is plainly wrong. We have seen before how investing in hard-to-sell assets within structures which promise investors redemption without a realistic timeframe can lead to those promises being unmet.
“Investment trusts offer the opportunity to invest in a wide range of assets and should be considered by any investor looking to include private assets within their portfolio. Investment trust shares can be bought on nearly all investment platforms and can be held in ISAs, SIPPs and general investment accounts.”
See investment trust managers’ comments on the differences between investment trusts and LTAFs.
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- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 294 members and the industry has total assets of approximately £267 billion.
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