Lessons Learned From Developing WTW's Long Term Asset Fund (LTAF)

LTAFs offer a new way to access illiquid assets. What have we learned in the process of launching one? And how can DC schemes navigate this brave new world on behalf of scheme members?

Why invest in productive finance?

Productive finance assets are severely underrepresented in the portfolios of UK Defined Contribution (DC) pension investors. Yet UK DC DC assets under management are growing incredibly fast, and DC scheme savers are true long-term investors. Time horizons longer than 30 years on average create opportunities to invest in less liquid asset classes.

Productive finance assets offer huge diversification benefits compared to traditional asset classes. With long term structural changes shaking up society and challenging developed economies, many private market assets stand to benefit where publicly listed assets may falter.