LifeSight lead investment adviser Andrew Doyle
LifeSight, WTW’s defined contribution (DC) master trust, has announced a £450m investment in the Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF).
The master trust said it had committed to investing £450m in the fund initially with the potential for additional investments in the future.
It said the strategy will feature in LifeSight's core default funds – meaning the vast majority of its members will benefit from this investment.
LifeSight currently has some 430,000 members and more than £24bn in assets under management.
The Schroders Greencoat Global Renewables+ LTAF invests in a diversified portfolio of renewable energy and energy transition-aligned infrastructure assets in the UK, Europe, US and other Organisation for Economic Co-operation and Development countries – targeting expected returns slightly above traditional listed equities.
The fund focuses on renewables such as wind and solar as well as other energy transition infrastructure assets such as large-scale batteries, energy efficient heat networks and green hydrogen projects.
The LTAF also has an environmental objective to deliver positive environmental impact through climate change mitigation by supporting the energy transition – an objective which is aligned to LifeSight's own net-zero goal.
LifeSight lead investment adviser Andrew Doyle said: "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 added: "LifeSight's investment into the 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."
The move comes after 17 of the largest UK workplace pension providers, including LifeSight, signed the Mansion House Accord in May – expressing their intent to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with at least 5% allocated to the UK.
Commenting on LifeSight's investment, minister for pensions Torsten Bell said: "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."
