Investment of £450 million in renewable infrastructure confirmed by LifeSight
LifeSight Embraces Clean Energy Investment with £450m Commitment to Schroders Greencoat LTAF
UK pension fund LifeSight, managed by WTW, has made a significant stride in the growing trend of investing in clean energy and energy transition infrastructure assets. The fund has committed £450m to Schroders Greencoat's Long-Term Asset Fund (LTAF), a move that reflects the current emphasis on private market assets with a focus on renewable energy and energy transition infrastructure.
The Schroders Greencoat Global Renewables+ LTAF, a specialist energy transition infrastructure fund, is at the heart of this investment. This fund, managed by Schroders Greencoat LLP, a specialist within Schroders Capital, has already deployed over $19bn into various energy transition assets. It focuses on renewable energy projects like wind and solar.
Andrew Doyle, lead investment adviser for LifeSight, expressed delight about the investment on behalf of LifeSight's members. He stated, "This investment represents a significant step in our commitment to sustainable investing and aligns with our members' long-term interests."
The Schroders Greencoat LTAF provides LifeSight's members with exposure to energy transition investments across various countries, including the UK, Europe, US, and OECD countries. This diversified portfolio aims to deliver returns slightly above traditional listed equities.
LifeSight, with a membership of 430,000, is one of the largest master trusts in the UK. The scale of the fund allows it to access specialist managers and innovative investments. In fact, this is not LifeSight's first foray into private equity LTAFs; it has already launched a dedicated private equity LTAF.
The commitment to the Schroders Greencoat LTAF is a testament to LifeSight's dedication to sustainable investing. It also reflects the broader trend in UK pension fund investment, where significant proportions of portfolios are allocated to private market sectors such as infrastructure and renewable energy.
LTAFs, introduced by the UK's Financial Conduct Authority in 2021, were designed to encourage pension fund investment in UK infrastructure due to growing government pressure. They enable DC investors and certain retail clients to access private market assets, fostering growth in renewable energy and energy transition infrastructure investments.
LifeSight's investment in the Schroders Greencoat LTAF is part of a broader movement in the UK pension industry. Current trends emphasize increasing allocations to private market assets with a focus on renewable energy and energy transition infrastructure, as illustrated by LifeSight's commitment. This movement aligns strongly with ongoing pension reforms and accords, such as the 2025 Pension Investment Review and the Mansion House Accord, which mandate large pension schemes to direct at least 10% of default fund assets into private markets and allocate 5% towards UK-based opportunities.
In summary, LifeSight's partnership with Schroders Greencoat exemplifies the strategic shift towards long-term, sustainable private infrastructure investments within UK pension portfolios. The investments made by LifeSight enhance the portfolios of its members in the core defaults, positioning the fund for sustainable returns in the long term. LifeSight, by signing the updated Mansion House Pledge in May 2024, further solidifies its commitment to sustainable investing and the energy transition.
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The investment of LifeSight's £450m in Schroders Greencoat's Long-Term Asset Fund is a direct reflection of the fund's focus on renewable energy and energy transition infrastructure, which falls under the broader category of sustainable investing (renewable-energy, investing, energy). Furthermore, LifeSight's commitment to Schroders Greencoat LTAF signifies a growing trend in the UK pension industry, where significant portions of portfolios are being allocated to private market sectors like renewable energy and energy transition infrastructure, with a strong emphasis on finance (industry, finance).
