The Defined Contribution (DC) section of Schroders Retirement Benefits Scheme (SRBS) is making significant moves in the investment world. The scheme has allocated £48m, equivalent to 20% of the default growth fund, to the Schroders Capital Climate+ LTAF. This bold move serves two main purposes. Firstly, it aims to provide more diversification benefits. Secondly, it seeks to enable access to the solid returns that private markets can deliver.
Private markets have been known to offer attractive returns, often outperforming traditional investment avenues. By investing in the Schroders Capital Climate+ LTAF, the Schroders pension scheme is tapping into this potential. This allocation is a strategic move that seeks to enhance the pension scheme’s exposure to these lucrative markets. The decision is likely to be welcomed by pension holders who are set to benefit from potentially higher returns.
Understanding the Schroders Capital Climate+ LTAF Investment
The Schroders Capital Climate+ Long Term Asset Fund (LTAF) is a fund specifically designed to capitalise on long-term investment opportunities. It focuses on investments that are beneficial to the climate and the environment. In particular, it prioritises companies and projects that are actively contributing to the fight against climate change. This makes it an attractive investment for entities that value sustainable and responsible investment.
The £48m investment into the Schroders Capital Climate+ LTAF by the Schroders pension scheme is a significant endorsement of the fund’s strategy. It’s also a clear indication of the increasing interest in climate-positive investments. The allocation not only enhances the pension scheme’s exposure to private markets but also aligns the scheme with the global push towards more sustainable investment practices.
The move by the Schroders pension scheme is part of a broader trend of pension funds diversifying their portfolios. More and more, they are looking beyond traditional asset classes and exploring opportunities in private markets. The robust returns from these markets, coupled with their potential for diversification, make them an attractive proposition for pension funds. This trend is likely to continue as pension schemes seek ways to maximise returns for their members.
In summary, the Schroders pension scheme’s investment into the Schroders Capital Climate+ LTAF is a strategic move. It not only provides exposure to the promising private markets but also aligns the scheme’s investment strategy with the global push towards sustainability.
