Schroders Greencoat has received regulatory approval in the UK to launch the Global Energy Infrastructure Long-Term Asset fund (LTAF).
Offering exposure to energy transition infrastructure, the LTAF will be a feeder fund into the Schroders Capital Semi-Liquid Energy Transition fund, launched a year ago for defined contribution clients. The feeder fund expands exposure to UK wealth clients, after receiving approval from the Financial Conduct Authority.
Portfolio manager of the Global Energy Infrastructure LTAF Duncan Hale said investors will be able to access “critical renewables” such as wind and solar assets, as well as newer parts of the market like green hydrogen. Schroders Greencoat is now financing around a third of projects initially approved through the UK’s green hydrogen programme.
Phil Middleton, head of UK client group at Schroders, commented: “Current market conditions present a favourable entry point for energy transition infrastructure investments and we’re seeing a wider set of investors wanting access to these opportunities.
“Again, Schroders Capital and Schroders Greencoat are at the forefront of delivering innovative solutions to meet investor needs. This fund will be the second in Schroders Capital’s LTAF range for UK wealth and will complement Schroders Greencoat’s existing investment trust range, providing investors access to the platform’s best ideas which are globally diversified by technology and geography.”
Hale added: “While real assets such as renewables are typically considered illiquid, our semi-liquid and LTAF funds strike a balance by providing regular and transparent access to liquidity, meeting the needs of the UK wealth investor base for flexibility. We’re pleased to further unlock access for a broader investor base, and channel new streams of essential capital towards decarbonising and electrifying our energy sources.”
Last year, Schroders launched the Schroders Capital Global Private Equity LTAF last year, the firm’s first UK wealth market focused LTAF.
