LifeSight will invest £450m of its core default into Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF), a move which has been welcomed by the government.
This is part of LifeSight’s broader strategy to diversify its default portfolio, meet its Mansion House Accord commitments while also being aligned to its own net zero goal.
This LTAF invests in a diversified portfolio of renewable energy and energy transition-aligned infrastructure assets across the UK, Europe, US and other OECD countries. As well as wind and solar, this includes other energy transition infrastructure assets such as large scale batteries, energy efficient heat networks and green hydrogen projects.
The LTAF seeks to deliver robust but predictable returns, and aims to deliver returns slightly above traditional listed equities.
The LifeSight DC master trust, owned by WTW, said it may look to extend this investment in future.
Torsten Bell, the Minister for Pensions adds: “This is a welcome step to invest more in infrastructure, especially energy infrastructure projects, since the signing of the Mansion House Accord in May. Working together, government and industry will deliver the investment our future prosperity depends on, supporting better outcomes for savers and faster growth for Britain.”
LifeSight lead investment adviser Andrew Doyle says: “Our scale as one of the largest master trusts in the UK means we are able to access specialist managers and innovative investments that enhance the portfolios of our members in our core defaults.
“This strategic investment underscores LifeSight’s commitment to sustainable and responsible investing, aligning with global efforts to transition to renewable energy sources, with the aim of delivering strong pension outcomes for members. It also supports our efforts to invest in UK private markets, which is aligned with the recent Mansion House Accord.”
Schroders Greencoat portfolio manager Tatiana Zervos adds: “LifeSight’s investment into Schroders Greencoat Global Renewables+ LTAF marks a significant step forward in the DC market’s efforts to support the transformation of the energy system in the UK and beyond.
“Schroders Greencoat is dedicated to investing in this critical asset class; these assets not only offer attractive and diversifying returns relative to investments traditionally offered to DC members, but also provide transparent and tangible sustainability benefits, offering DC members the opportunity to play their part in abating carbon emissions, contribute to energy security and help control the costs paid by consumers.”
LifeSight has 430,000 members and over £24bn in assets under management.
