Gill Wadsworth examined the success of the Long Term Asset Fund this week, noting that assets in the sector had risen to GBP7.3 billion by April 2026 climbing from GBP5 billion in June 2025, according to Morningstar data.
More than two-thirds (69 per cent) of UK DC pension schemes plan to invest in LTAFs, according to research from Schroders published this February, with Morningstar noting there is GBP3.1 billion of committed capital yet to be deployed to the vehicles.
The dash to private markets follows a well-publicised push from government to drive billions of pounds of retirement savings into growth assets, primarily those based in the UK.
Wadsworth concludes: “This shift in mindset reflects yet more government intervention in the UK pensions sector. The value for money framework developed by the Financial Conduct Authority, Department for Work and Pensions, and The Pensions Regulator which is expected to be implemented later this year, will demand DC pension schemes focus on delivering long-term value for members rather than on low cost.”
Our In My Opinion this week came from Irina Kurochkina, Portfolio Manager, Aegon Asset Management, who writes that when geopolitical shocks hit financial markets, the instinct among investors is to reach for the nearest historical parallel.
“One thing investors should feel strongly about is the importance of not letting home bias dominate a government bond allocation,” Kurochkina writes. “Many UK investors I speak with hold an overwhelmingly gilt-heavy portfolio. I understand the historical rationale, but the current environment makes a compelling case for a broader approach.”
We also brought you April’s summary of activity in the global digital assets ETP markets, with CoinDesk and data drawn from Trackinsight. According to data from TrackInsight, bitcoin-linked products again dominated net inflows globally in April while Ethereum posted its second consecutive month of positive flows and the multi-asset category returned to positive territory after recording net outflows in March.
Finally, I am very pleased to be back chairing two ETF panels at IMPower Fund Forum again this summer and will be visiting with our new head of business development, Simon Holloway. Come and find us. And, using this link, I can offer you a 10 per cent discount on the attendance.
Beverly Chandler, Managing Editor, Institutional Asset Manager
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