The Defined Contribution (DC) section of Schroders Retirement Benefits Scheme (SRBS) has allocated £48m, (20% of the default growth fund), to the Schroders Capital Climate+ LTAF as it looks to provide greater diversification benefits and access to the robust returns private markets can deliver for members.
Climate+ – the UK’s to receive regulatory approval – “provides multi-private market exposure.”
The fund seeks to “generate long-term risk-adjusted returns, while also contributing positively to climate change and supporting the transition towards net zero – directly aligning with the SRBS sustainability objectives.”
The strategy invests “across infrastructure, real estate, private equity, natural capital and biodiversity-focused assets through a mixture of Schroders Capital and externally managed funds.”
It focuses on four “long-term themes: climate mitigation, climate adaption, biodiversity/natural capital and social vulnerabilities.”
Ryan Taylor, Head of UK DC Clients, Schroders, commented:
“The addition of the Schroders Capital Climate+ LTAF means SRBS members now have access to a multi-asset private markets fund which offers significant diversification across asset classes and geographies and the potential to enhance returns over the long-term. This was made possible through a careful and considered approach which addressed what previously have been the specific obstacles preventing private markets allocations. The LTAF structure overcomes these historic barriers to entry while taking into account the liquidity needs relating to the wider portfolio and members’ retirement glidepaths.”
Lisa Mundy, Chair of Trustee, SRBS, commented:
“A review of our default investment strategy found that our members would gain valuable diversification benefits through an allocation to private markets. We believe the addition of Climate+ supports the Trustee’s objective of enhancing overall returns compared to our previous default investment strategy, thereby improving retirement outcomes for our members. It also supports the Trustee’s stewardship objectives in relation to climate change and sustainable investment.”
As noted in the update, Schroders is a global investment manager which provides “active asset management, wealth management and investment solutions, with £778.7 billion (€941.8 billion; $975.3 billion) of assets under management at 31 December 2024.”
As a UK listed FTSE100 company, Schroders has “a market capitalisation of circa £6 billion and over 6,000 employees across 38 locations.”
Established in 1804, Schroders remains true “to its roots as a family-founded business.”
The Schroder family continues to be a “significant shareholder, holding approximately 44% of the issued share capital.”
Schroders’ success can be attributed “to its diversified business model, spanning different asset classes, client types and geographies.”
The company offers products and solutions “through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.”
Schroders aims to provide investment performance “to clients through active management.”
This means directing capital towards resilient businesses “with sustainable business models, consistently with the investment goals of its clients.”
Schroders serves a client base that includes “pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.”