Fulcrum Asset Management has received regulatory approval to launch its first commingled long term asset fund ( LTAF), the WS Fulcrum Diversified Private Markets LTAF.
LTAFs allow DC pensions and other long-term investors to access a broader range of less liquid assets, including private markets. Recommended by the Productive Finance Working Group in 2020, an initiative by the Bank of England, HM Treasury, and the FCA, LTAFs aim to drive capital into unlisted UK companies, emerging technology, and infrastructure to support economic growth and job creation.
The solution is built for a range of professional investors in the UK such as defined contribution and defined benefit pension schemes, charities, endowments and wealth managers.
Earlier this year Fulcrum launched its first LTAF on behalf of a single-employer UK DC pension scheme. The second fund is expected to launch on November 29, 2024. Waystone will act as the authorised corporate director for both funds.
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The Fund is an open-ended UK OEIC, an investment fund based in the UK, structured as a company to invest in stocks and other securities. It aims for long-term capital growth by investing in a diversified mix of private assets, including value-added real estate, infrastructure, natural resources, alternative credit, and private equity (including venture capital).
The WS Fulcrum Diversified Private Markets LTAF uses managers from Fulcrum’s panel of illiquid specialists to source and implement “high-quality illiquid investments”.
Unusually, the product will offer a simple, transparent, flat-fee structure.
Matthew Roberts, head of Fulcrum Alternative Solutions, said: “We are thrilled to be bringing our LTAF to the broader professional investor marketplace. We’ve taken time to ensure that we are offering investors a carefully designed entry point to private markets. Ever since we started the Fulcrum Alternative Solutions team, our goal has been to solve the challenges that investors have faced when it comes to accessing alternatives and this fund launch represents a significant milestone in that journey.”
