Schroders launches energy transition infrastructure LTAF

Deploying capital across wind and solar assets

Male engineer in blue suit and protective helmet installing photovoltaic panel system. Professional electrician mounting solar module on roof. Alternative energy ecological concept

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By Michael Nelson

Schroders Greencoat, the renewables and energy transition infrastructure manager of Schroders Capital, has launched a long-term asset fund (LTAF) dedicated to renewable energy and energy transition infrastructure.

The Schroders Greencoat Global Renewables+ LTAF is designed to allow UK pension savers to invest in this asset class while benefiting from “stable, diversifying and inflation-linked investment returns”. It will be managed by Schroders Greencoat alongside its Luxembourg-domiciled sister fund, the Schroders Capital Semi-Liquid Energy Transition fund, launched in January.

The fund will target infrastructure supporting the energy transition across the UK, US and Europe, providing access to 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.

Duncan Hale, portfolio manager at Schroders Greencoat, said: “We are pleased to be introducing this ground breaking 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. 

“Alongside wind and solar, a dedicated portion of this portfolio also taps into newer technologies associated with energy-transition-related infrastructure, like hydrogen and district heating, which have the potential to generate superior returns across a longer period.”

According to Schroders, LTAFs are particularly suitable for the UK defined contribution and UK charities markets, providing savers with access to a previously untapped opportunity, as well as through defined benefit pension schemes. 

This article was first published in our sister publication, ESG Clarity

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