Schroders Capital has received regulatory approval from the UK’s Financial Conduct Authority to launch a renewables-dedicated Long-Term Asset Fund (LTAF).
The newly approved fund will be managed by Schroders Greencoat, the renewable energy specialist of Schroders Capital.
The Schroders Greencoat LTAF is the first authorised in the UK to have an investment remit solely focused on renewable energy and energy transition-aligned infrastructure.
This announcement follows on from the recent launch of Schroders Capital Climate+ LTAF, the UK’s first LTAF.
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 assets.
Richard Nourse, Managing Partner and Schroders Greencoat, said: “In March 2013, Schroders Greencoat pioneered the renewable energy infrastructure investment trust market with the launch of Greencoat UK Wind PLC, still the sector leader and now a £3.6bn company on the edge of the FTSE 100.
“Today, with increased focus on the DC pension market, we are again pioneering innovative ways to make investment into renewable energy and other energy transition related infrastructure accessible to as wide a range of investors as possible.
“With the imminent launch of the Schroders Greencoat LTAF we look forward to being able to offer DC investors the opportunity to make attractive and impactful long-term investments into the energy transition.”
Duncan Hale, Private Markets Group, Schroders Greencoat, said: “For too long DC pension scheme members have had their noses pressed up against the glass, looking in at other types of investors enjoying the benefits that come from investing in illiquid assets.
“We are excited about the ability to offer access to renewable energy and energy transition related infrastructure assets to DC members widely, not only due to the attractive risk and return metrics they provide but also their ability to reflect members’ sustainability requirements.”