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Schroders has launched the UK’s first long-term asset fund dedicated to renewable energy and energy transition infrastructure.
The investment manager said the fund would allow UK pension savers to invest in the asset class whilst benefiting from stable, diversifying and inflation-linked investment returns.
The Schroders Greencoat Global Renewables+ Long-Term Asset Fund was launched this morning by renewables specialist arm of Scroders Capital.
The fund will target infrastructure supporting the energy transition across the UK, US, and Europe, providing access to attractive, long-term investments in private markets.
It will deploy capital across wind and solar assets, as well as a range of energy transition assets including hydrogen, heating and storage.
Schroders Greencoat launched the UK’s first long-term asset fund (LTAF) last year, the Schroders Capital Climate+ LTAF.
The funds are part of the firm’s suite of semi-liquid funds, which offer more liquid and operationally simple access to private assets investments.
The new fund will be managed by Schroders Greencoat alongside its Luxembourg-domiciled sister fund, the Schroders Capital Semi-Liquid Energy Transition Fund, launched in January.
Tim Horne, head of UK institutional defined contribution at Schroders, said he expects the fund to be popular with DC pension funds.
He said: “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.
“It’s 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.”
LTAFs are regulated, open-ended investment vehicles designed to enable a broader range of investors, with longer-term horizons, to invest efficiently in illiquid and private markets. Their structure is designed for the UK defined contribution, defined benefit, and UK charities markets.
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