Industry participants comment on introduction of long-term fund structures
It seems that the jury is still out regarding the recent proposals by the Investment Association for a long-term asset fund structure. The IA is proposing a new open-ended fund structure that would have the ability to invest in less liquid or illiquid assets, such as property and infrastructure projects.
“Open-ended daily traded funds on the whole work well for liquid assets, but they clearly do not work well for illiquid assets. Maybe the long-term fund structure proposed by the IA will address that,” says Ryan Hughes, head of active portfolios, AJ Bell.