This marks the second LTAF from Schroders, which launched the UK’s first long-term asset fund in March 2023 – the Climate+ LTAF – offering defined contribution (DC) pension funds access to infrastructure, real estate, private equity, natural capital and biodiversity-focused assets targeting the net zero transition.
The company received regulatory approval for the Global Renewables+ fund from the Financial Conduct Authority in May 2023.
Schroders said the fund is the “UK’s first LTAF exclusively dedicated to renewable energy and energy transition infrastructure” and will be available to DC and DB pensions schemes, alongside UK charities.
Schroders Capital unveils UK’s first LTAF
Global Renewables+ will target opportunities across the sectors in the UK, US and Europe, and provide access to long-term investments in private markets.
Investor capital will be deployed across wind and solar assets, as well as hydrogen, heating and storage, Schroders Greencoat noted.
The LTAF sits within the company’s existing suite of semi-liquid funds and will be managed by Schroders Greencoat, which oversees its Luxembourg-domiciled sister fund, the Schroders Capital Semi-Liquid Energy Transition fund, launched last month.
Duncan Hale, portfolio manager at Schroders Greencoat, said: “We are pleased to be introducing this groundbreaking LTAF, which will offer investors a powerful combination of strong returns potential with a unique risk profile, while directing essential capital towards decarbonising and electrifying our energy sources.”
Hale explained the LTAF will tap into “newer technologies” associated with energy transition-related infrastructure, alongside the more traditional ones, as they have the potential to “generate superior returns across a longer period”.
Schroders Capital gains FCA approval for renewables and energy transition LTAF
Tim Horne, head of UK institutional defined contribution at Schroders, added: “Schroders Capital now has two of the five authorised LTAFs currently available, putting us at the forefront of the evolving private market.
“With the DC market expected to make material investments into private markets over the coming years, the ability to access dedicated renewable energy and the energy transition exposure is an attractive and highly diversifying potential addition to DC members’ portfolios.”
He said: “It is exciting to be able to offer DC members and other investors access to these assets, which meet both their need for stable long-term returns and sustainability goals.”
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