'Reservations' around illiquid weightings in 'untested' LTAF model

LTAFs leave "more to worry about"

Reservations remain about illiquid assets in open-ended structures like long-term asset funds, with the untested model leaving “more to worry about than get excited about”, interactive investor has warned.

Long-Term Asset Funds continue to come under fire following the collapse of the Woodford fund over two years ago. The statement follows the Association of Investment Companies warning on Wednesday (13 October) that non-professional investors should not invest in such products to prevent any similar failures to the Woodford saga in the future. "It's refreshing to see a trade organisation commissioning bold research on the extent of broken trust following the collapse of the Woodford Equity Income fund, although it would be more refreshing still if it was coming from the open-ended industr...