Schroders has launched its second long-term assets fund in the space of two months.
It has received approval by the FCA to launch an LTAF dedicated to renewable energy and the energy transition.
Schroders launched the UK's first LTAF in March - the Schroders Capital Climate+ LTAF, a diversified multi-private assets fund which aims to support the transition towards net zero economies through its investments.
LTAFs are open-ended investment vehicles designed to allow a broad range of investors to invest in illiquid and private assets.
The only other company to have launched an LTAF so far has been Aviva, which announced the launch of the Aviva Investors Real Estate Active LTAF earlier this week after seeding it with an existing £1.5bn portfolio.
Schroders, which now runs two of the three LTAFs on the market, believes the new fund structure allows greater access to private assets, particularly for the UK defined contribution market.
The fund launched today will be managed by Schroders Greencoat, the renewable energy specialist of Schroders Capital.
Tim Horne, head of UK institutional DC at Schroders, said: "Broadening the opportunity set for savers needs to be a priority for the DC market, particularly in private assets which have the potential to help DC investors achieve their aims of a good outcome in retirement.
"Schroders continues to lead the market in DC innovation, having two of the three authorised LTAFs. The growth and investment into our LTAF platform is just one way we are helping to meet the needs of UK retirement savers."
LTAFs were created to solve the liquidity mismatch conundrum which has seen open-ended property funds gate for withdrawals multiple times over the past few years due to market volatility.
The issue was also highlighted by the failure of the Woodford Equity Income fund, which was an open-ended fund marketed at retail investors which invested heavily in unlisted companies.
LTAFs are currently aimed at giving sophisticated investors and defined contribution pension schemes access to illiquid or long-term assets, such as infrastructure, private equity and real estate.
But last year the FCA launched a consultation on expanding access to LTAFs to retail investors who are categorised as "restricted" as well.
damian.fantato@ft.com
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