LONDON, July 1, 2025 – A new pulse survey conducted by WTW reveals that while the Long-Term Asset Fund (LTAF) regime is still in its early stages, industry appetite is building quickly – with potential for up to fourfold growth in the number of LTAF vehicles available.
Polling conducted at WTW’s MiX London forum shows only 14% of asset management firms reported having launched a Long-Term Asset Fund (LTAF) for the defined contribution (DC) market.
However, 62% are either currently considering one or have one in development, suggesting the new fund structure can still be expected to undergo significant expansion.
For the wealth segment, the story is similar: while only four firms have launched, another six are actively considering a wealth-focused LTAF.
Private debt emerged as the most commonly cited asset class for future LTAF strategies, slightly ahead of private equity. This reflects a growing focus on income resilience and a higher-rate environment in portfolio construction.
Polling at the event, which took place from 13-14 May, included representatives of 21 separate investment organisations representing total assets under management of over $10 trillion.
“LTAFs are no longer a fringe concept. But they are not yet a default. The data makes clear the intent to implement is firmly in place and the reasons why are clear.”
Ellie Lloyd Jones | Head of Director, Investments, WTW
Ellie Lloyd Jones, Director, Investments at WTW, comments: “LTAFs are no longer a fringe concept. But they are not yet a default. The data makes clear the intent to implement is firmly in place and the reasons why are clear. The Government expects £25bn to be invested directly into the UK economy by 2030 as a result of the Mansion House Accord, and we expect LTAFs to be a meaningful contributor to this growth.
“The firms that can bridge that gap, especially for the wealth market, will be the ones who define the next growth phase. We expect a new, steadier but likely inevitable phase of growth for LTAF offerings, with the majority of major investment managers likely to have a full offering within 2-3 years.”
WTW’s Investments business is focused on creating financial value for end investors through its expertise in risk assessment, strategic asset allocation, fiduciary management and investment manager selection. It has over 900 colleagues worldwide, more than 1,000 investment clients globally, assets under advisory of over US$3.4 trillion and US$168 billion of assets under management.
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