Schroders’ pension scheme has made a significant investment into private markets and green technology as its invests £48m into its Climate+ LTAF.
This investment comes from the DC section of Schroders Retirement Benefits Scheme (SRBS), as the trustees look to deliver greater diversification and and deliver more robust returns for members.
The Climate+ LTAF was the first long-term asset fund to receive regulatory approval. It offers multi-private market exposure, investing across infrastructure, real estate, private equity, natural capital and biodiversity-focused assets through a mixture of Schroders Capital and externally managed funds.
The LTAF seeks to generate long-term capital growth while contributing positively to climate change and supporting the transition towards net zero. It focuses on four long-term themes: climate mitigation, climate adaption, biodiversity/natural capital and social vulnerabilities.
Schroders head of DC clients Ryan Taylor says: “The addition of the Schroders Capital Climate+ LTAF means SRBS members now have access to a multi-asset private markets fund which offers significant diversification across asset classes and geographies.
“This was made possible through a careful and considered approach which addressed what previously have been the specific obstacles preventing private markets allocations. The LTAF structure overcomes these historic barriers to entry while taking into account the liquidity needs relating to the wider portfolio and members’ retirement glidepaths.”
Lisa Mundy, chair of trustee at SRBS adds: “A review of our default investment strategy found that our members would gain valuable diversification benefits through an allocation to private markets. We believe the addition of Climate+ supports the trustee’s objective of enhancing overall returns compared to our previous default investment strategy, improving retirement outcomes for members. It also supports the Trustee’s stewardship objectives in relation to climate change and sustainable investment.”
