Schroders Expands LTAF Offerings with UK’s First Wealth-Dedicated Infrastructure Fund
27 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Schroders continues to lead the UK market in Long-Term Asset Funds (LTAFs) with the launch of the country’s first wealth-dedicated infrastructure LTAF. Following its initial success in the Defined Contribution (DC) space, the asset manager is now expanding access to private and illiquid assets for wealth investors.
A Pioneering Approach to LTAFs in the UK
Schroders' introduction of the UK’s first Long-Term Asset Fund (LTAF) marks a significant regulatory milestone, offering a new open-ended investment structure tailored for investors with long-term horizons. The LTAF framework aims to provide a broader range of investors with access to illiquid and private markets, which have traditionally been dominated by institutional players.
Building on this foundation, Schroders Greencoat, the renewables and energy transition infrastructure arm of Schroders Capital, has now received approval from the Financial Conduct Authority (FCA) to launch the first wealth-dedicated infrastructure LTAF. This new vehicle is designed to allow wealth clients to invest efficiently in private infrastructure assets, providing an alternative to semi-liquid and closed-ended structures.
Expanding Access to Renewable Energy Investments
The newly approved Global Energy Infrastructure LTAF will act as a feeder fund into the Schroders Capital Semi-Liquid Transition Fund, launched in January 2024. This fund holds over 160 assets across a diverse range of renewable energy sectors, including solar, green hydrogen, battery storage, and district heating.
With this launch, Schroders Greencoat strengthens its market position, adding to its near £9.3 billion in assets under management across various renewable-focused investment vehicles, including LTAFs, investment trusts, and other fund structures.
Schroders Capital and Schroders Greencoat are at the forefront of delivering innovative solutions to meet investor needs. The latest LTAF will complement Schroders Greencoat’s existing investment trust range, offering diversified exposure across geographies and technologies.
Phil Middleton, head of the UK client group at Schroders
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 UK wealth investors. This vehicle will help channel essential capital into decarbonizing and electrifying energy sources, broadening the investment base for sustainable infrastructure.
Duncan Hale, portfolio manager at Schroders Greencoat
With this latest launch, Schroders Greencoat continues to pioneer access to private market investments, ensuring that wealth investors can participate in the global transition to renewable energy.
