The Financial Conduct Authority (FCA) has granted approval for Schroders Greencoat to launch the UK’s first infrastructure Long-Term Asset Fund (LTAF) focused on the UK wealth market.

Schroders Greencoat, the specialist renewables and energy transition infrastructure manager of Schroders Capital, received regulatory approach to launch a Global Energy Infrastructure LTAF, expanding Schroders Capital’s range of LTAFs available to the UK wealth market.

The launch marks the UK’s first energy transition infrastructure-focused LTAF available to wealth clients, which Schroders said was in response to a growing demand for climate solutions.

The LTAF will be a feeder fund into the Schroders Capital Semi-Liquid Energy Transition Fund, which launched last year and has a global investment remit and exposure to more than 160 individual assets supporting the energy transition.

It will seek to give UK wealth clients exposure to assets that look to offer diversification within their portfolios.

This launch will build on Schroders Greencoat’s existing products, which offer a range of investors access to its investment capabilities through its investment trusts, DC and wealth LTAFs, semi-liquid and closed-ended funds.

It also follows the launch of the Schroders Capital Global Private Equity LTAF last year, the firm’s first UK wealth market-focused LTAF.

“Current market conditions present a favourable entry point for energy transition infrastructure investments and we’re seeing a wider set of investors wanting access to these opportunities,” stated Schroders head of UK client group, Phil Middleton.

“Again, Schroders Capital and Schroders Greencoat are at the forefront of delivering innovative solutions to meet investor needs.

“This fund will be the second in Schroders Capital’s LTAF range for UK wealth and will complement Schroders Greencoat’s existing investment trust range, providing investors access to the platform’s best ideas which are globally diversified by technology and geography.”

Schroders Greencoat portfolio manager, Duncan Hale, added: “This launch will provide UK wealth investors access to critical renewables such as wind and solar assets, as well as newer parts of the market like green hydrogen, where Schroders Greencoat has been actively pursuing opportunities, now financing around a third of projects initially approved through the UK’s green hydrogen program.

“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 the UK wealth investor base for flexibility.

“We’re pleased to further unlock access for a broader investor base, and channel new streams of essential capital towards decarbonising and electrifying our energy sources.”

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