Fidelity has launched its first long-term asset fund, the Fidelity Diversified Private Assets LTAF.

The investment manager launched the fund due to increasing demand for the inclusion of private assets in investment portfolios.

The fund will give investors access to a globally diversified range across private equity, private credit, infrastructure, real estate and natural resources, as well as exposure to public assets for liquidity purposes, within a single portfolio.

It aims to deliver open architecture access to ‘best-in-class’ private assets.

The strategy focuses on high-quality private asset funds globally, while considering environment, social and governance sustainability risks in the investment process, and implementing Fidelity International’s firmwide exclusions list.

Henk-Jan Rikkerink, global head of solutions and multi asset, at Fidelity International said: “Today, a number of clients are already asking to include private assets in their solutions, and we only expect this to grow over the coming years. In a world of challenged returns and reduced diversification from more traditional asset classes, clients are looking for a wider range of options to meet their long-term investment objectives.”

In October the FCA confirmed that LTAFs will be covered by the Financial Services Compensation Scheme.

The confirmation was part of a move by the FCA to make LTAFs more consumer friendly and to encourage retail investors to have confidence in investing in them.

The LTAF vehicle was introduced in 2021 by the Government to encourage more investment in long-term, illiquid assets, such as venture capital, private equity and private debt, real estate and infrastructure. 

So far few providers have launched LTAFs. Schroders became the first provider to have an LTAF approved by the FCA last year, and also added a renewable energy and energy transition infrastructure LTAF in February.