Fund supervisor Schroders has launched the UK’s first long-term asset fund (LTAF) devoted to renewable power and power transition infrastructure.
The funding supervisor mentioned the fund would permit UK pension savers to spend money on the asset class whereas benefiting from secure, diversifying and inflation-linked funding returns.
The Schroders Greencoat World Renewables+ Lengthy-Time period Asset Fund was launched right now by the renewables specialist arm of Schroders Capital.
The fund will goal infrastructure supporting power transition throughout the UK, US, and Europe, offering entry to long-term investments in non-public markets.
It’s going to deploy capital throughout wind and photo voltaic belongings, in addition to a variety of power transition belongings together with hydrogen, heating and storage.
Schroders Greencoat launched the UK’s first long-term asset fund (LTAF) final yr, the Schroders Capital Local weather+ LTAF.
The funds are a part of the agency’s suite of semi-liquid funds, which supply extra liquid and easy entry to personal belongings investments.
The brand new fund will likely be managed by Schroders Greencoat alongside its Luxembourg-domiciled sister fund, the Schroders Capital Semi-Liquid Vitality Transition Fund, launched in January.
Tim Horne, head of UK institutional outlined contribution at Schroders, mentioned he expects the fund to be well-liked with DC pension funds.
He mentioned: “With the DC market anticipated to make materials investments into non-public markets over the approaching years, the flexibility to entry devoted renewable power and the power transition publicity is a pretty and extremely diversifying potential addition to DC members’ portfolios.
“It’s thrilling to have the ability to supply DC members and different buyers entry to those belongings, which meet each their want for secure long-term returns and sustainability targets.”
LTAFs are regulated, open-ended funding autos designed to allow a broader vary of buyers, with longer-term horizons, to take a position effectively in illiquid and personal markets. Their construction is designed for the UK outlined contribution, outlined profit, and UK charities markets.