Investor’s Chronicle quotes and concurs with ShareSoc’s view that the FCA’s newly approved Long Term Asset Fund (LTAF) an illiquid open ended fund should have been consigned to the scrap heap and definitely not before their report into Woodford is published. Nevertheless, LTAFs are on their way.
In their response to the FCA’s consultation, ShareSoc and the UK Shareholder Association didn’t mince their words: the LTAF proposal should be consigned to the scrap heap, and no new type of fund should be contemplated until the FCA had reported on its Woodford investigation. It’s a good point. It is already possible to invest in infrastructure and unlisted companies through VCTs and specialist investment trusts which do not have long redemption periods as Dave Baxter highlights here. Nevertheless, LTAFs are on their way. That’s a reminder that investors should heed Rishi Sunak’s budget rebuke to businesses and individuals who always ask “what is the government going to do?” No one can protect your interests better than you. Consultations and regulations can only achieve so much. LTAFs may be ideal for big pensions, less so for small investors. If Woodford could happen, anything can happen.