As part of the Leeds Reforms, the government will permit Long-Term Asset Funds (LTAFs) to be included in ISAs starting April 2026.
According to new research by the Investment Association, 57% of UK ISA investors would consider allocating funds to LTAFs, which focus on illiquid assets such as commercial real estate and private equity.
Interest in LTAFs is strongest among younger generations, with 77% of Millennials and 70% of Gen Z respondents expressing a willingness to invest in them.
In contrast, only 41% of Baby Boomers said they would consider doing the same.
Chris Cummings, Chief Executive of the Investment Association, commented: “Expanding retail investor access to private markets could not only enhance returns for individual savers but also support broader economic growth.”
“We’ve long advocated for including LTAFs in Stocks and Shares ISAs, and our latest research highlights their transformative potential.”
When asked why they’d invest in private assets, 76% cited inflation protection, 67% pointed to portfolio diversification, and 62% saw better long-term growth than public markets.
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