Scottish Widows has got permission from the UK regulator, the Financial Conduct Authority, to launch three long-term asset funds (LTAFs).
The funds that have been approved are:
- CG Scottish Widows LTAF (umbrella fund)
- CG Scottish Widows Growth LTAF Sub-Fund
- CG Scottish Widows Diversified Credit LTAF Sub-Fund
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For the umbrella fund, Carne will serve as the alternative investment manager, while Aberdeen Investments will be the fund manager for the CG Scottish Widows Growth LTAF Sub-Fund and BNP Paribas Asset Management will be the manager of the Diversified Credit LTAF Sub-Fund.
The funds will offer investors access to a “spectrum of private market investments” including private credit.
“We look forward to developing the relationship further to enable defined contribution investors access to a bespoke private credit solution, something we know from our experience can add real value to member returns when structured in an innovative and thoughtful way,” said Philip Dawes, head of distribution, UK & Ireland, BNP Paribas AM.
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“We’re on track to launch our LTAF this year and excited to have taken the next step toward offering new investment options to over four million workplace pension customers across the UK,” said Kevin Doran, chief investment officer at Scottish Widows.
“We’ve designed our investment approach to better shape how and where we invest through our LTAF as well as tapping into opportunities across Lloyds Banking Group. This will help more of our members’ money go straight into private assets that can really help our customers achieve good outcomes in retirement as part of a modern portfolio structure.”
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