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Schroders Capital launches climate change LTAF for UK pensions

Schroders Capital, the’ specialist private markets investment division of Schroders, has launched Schroders Capital Climate+ LTAF, a Long-Term Asset Fund, designed to help UK pension fund investors support the net zero transition.

Schroders Capital, the specialist private markets investment division of Schroders, has launched Schroders Capital Climate+ LTAF, a Long-Term Asset Fund (LTAF), designed to help UK pension fund investors support the net zero transition.

Schroders received regulatory approval earlier this month to launch the UK’s first LTAF, an open-ended investment vehicle designed to enable a broader range of investors with longer-term horizons to invest efficiently in illiquid and private assets.

UK master trust Cushon is the strategy’s founding investor.

Schroders Capital says the core objective of Climate+, a diversified multi-private assets solution, is to contribute positively to climate change and support the transition towards net zero economies through its investments. The strategy will aim to invest across four long-term themes – climate mitigation, climate adaption, biodiversity/natural capital and social vulnerabilities.

The strategy will allocate to infrastructure, real estate, private equity, natural capital and biodiversity-focused assets, through a mixture of Schroders Capital and externally-managed funds.

Schroders Capital says it will also leverage the extensive experience of impact investing pioneer BlueOrchard, acquired in 2019, to deliver a high impact strategy, aligning to the Operating Principles for Impact Management (OPIM).  

The strategy may obtain exposure to underlying assets through segregated accounts, as well as direct, secondary and co-investments.

It will also operate a robust liquidity management framework with a focus on managing excess cash and investing in more liquid assets. 

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