Schroders Cap adds climate private assets fund

Schroders Capital has announced the launch of their Climate+ LTAF, a Long-Term Asset Fund designed to help UK pension funds transition to net zero.

The launch comes after Schroders received regulatory approval to launch the UK’s first LTAF, an open-ended investment vehicle designed to enable investors with longer-term horizons to invest in illiquid and private assets.

The strategy will aim to invest across four long-term themes; climate mitigation, climate adaption, biodiversity/natural capital and social vulnerabilities. It will allocate to infrastructure, real estate, private equity, natural capital and biodiversity-focused assets, through a mixture of Schroders Capital and externally-managed funds. Schroders will also use BlueOrchard, acquired in 2019, to deliver an impact strategy aligning to the Operating Principles for Impact Management (OPIM).

Tim Horne, Head of UK Institutional Defined Contribution (DC), Schroders says, “Opportunities for UK DC savers to benefit from the returns private assets can bring have traditionally been very limited. The launch of the Climate+ strategy will enable investors to take advantage of the diversification and performance private assets can deliver, as well as the sustained momentum now being directed towards the global transition to net zero and green economies.”