It has been announced that from April 2026, in the UK, LTAFs will be allowed in the ISA wrapper.
I’ve been doing research, and I’m still making up my mind, it’s a awhile away anyway.
What do you all think of them?
It really depends on one’s risk tolerance and liquidity needs. Personally, I’m quite risk-averse and prefer investments where I can adjust quickly if circumstances change (e.g., selling or buying without long lock-ins).
LTAFs in an ISA could offer higher returns, but the illiquidity and potential volatility might not suit everyone.
Well I think it’s a good idea, but we already have access to some funds already.
I suspect they are targeting infrastructure, so here is an example of one that is now closed.
The short is the fund returned an average of a 12.6% capital return and 5.5% yield on European infrastructure investment, a return of 2.6x in fifteen years. The popular S&P500 return in the same timeframe is 11.8% annually in total.
I don’t see why there are so many different wrappers, an Investment Trust could also provide a wrapper that could offer the same.
It’s a slightly different asset class and I welcome its addition, but we need to also simplify the markets.
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I do agree, it is another level of complexity and the returns are very slow drip.
As for the lock in period, it might be good as part of a SIPP, if you want to lock the money away and have some sort of gain, even if it is a modest one.
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