Just one in four agree LTAFs will boost DC investment

Just 24% of survey respondents said LTAFs will boost private market DC investment

Holly Roach
clock • 1 min read
Only around a quarter of Buzz respondents said LTAFs would increase private market investment
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Only around a quarter of Buzz respondents said LTAFs would increase private market investment

Just one in four agree long-term asset funds (LTAFs) will significantly boost private market defined contribution (DC) investment, according to a PP poll.

Just 24% of Pensions Buzz respondents last week said the introduction of LTAFs will boost investment in this area. This comes after the Financial Conduct Authority earlier this month authorised Schroders Capital to launch the UK's first LTAF.

Of the 24%, one respondent suggested: "LTAFs need to be unleashed with far greater applicability and scope to other investors to be transformational."

"It is inevitable if the leading master trusts incorporate an allocation to LTAFs in their default," another said.

"I am not sure it will significantly boost private market DC investment at the start, but over time I believe it is possible," suggested a different pundit.

Another suggested LTAFs will only boost private market DC investment "if it is structured in a correct way".

Of the 35% who did not agree, one noted: "The average pension contributor wants life to be simple. This is just another complication to them."

"It will add to the range of options, but significantly boost is too strong an assumption," argued another.

A further commentator suggested LTAFs will "make little difference to overall investments".

Pensions Buzz is conducted each week to anonymously collate our readers' views on key news and trends. Respondents include actuaries, trustees, investment managers, lawyers, pension scheme administrators and consultants. A new poll is released every Monday!

To take part, email our research team here.

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