LifeSight adds £450m renewables investment to default strategy

The investment was made into the Schroders Greencoat Global Renewables+ fund, which is structured as a long-term asset fund (LTAF).

The £24bn master trust said in a statement that the investment would form part of its core default strategy, adding that it could allocate more to the LTAF in future.

The allocation follows LifeSight’s backing of a private equity-focused LTAF last year, which is run by its parent company.

The Schroders Greencoat Global Renewables+ LTAF was launched last year and invests in renewable energy infrastructure assets as well as other “energy transition-aligned” assets. This includes wind and solar power, battery storage, and green hydrogen power generation.

It aims to outperform traditional listed equities and will invest globally, but primarily in the UK, Europe, the US and other OECD countries.

Andrew Doyle, lead investment adviser for LifeSight, said: “Our scale as one of the largest master trusts in the UK means we are able to access specialist managers and innovative investments that enhance the portfolios of our members in our core defaults.

“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.”

He added that the investment also aligned with the master trust’s support for the Mansion House Accord, which it signed on launch in May along with 16 other pension schemes and providers.

Pensions minister Torsten Bell welcomed the investment, adding: “Working together, government and industry will deliver the investment our future prosperity depends on, supporting better outcomes for savers and faster growth for Britain.”

Last month, fellow master trust Smart Pension allocated £330m to two renewable energy funds run by Octopus Energy as part of its planned 15% allocation to private markets within its default fund.