Scottish Widows gets approval to launch LTAFs

Scottish Widows has been granted permission from the UK regulator, the Financial Conduct Authority (FCA), to launch three long-term asset funds (LTAFs).

The following funds have been approved:

• CG Scottish Widows LTAF (umbrella fund) - Carne will serve as the Alternative Investment Fund Manager
• CG Scottish Widows Growth LTAF Sub-Fund - Aberdeen Investments has been selected as initial fund manager
• CG Scottish Widows Diversified Credit LTAF Sub-Fund - BNP Paribas Asset Management has been selected as initial fund manager

The funds will offer investors access to a "spectrum of private market investments" including private equity and private credit. Scottish Widows said it will leverage parent company Lloyds Banking Group's expertise across UK-based private market investments.

Kevin Doran, chief investment officer at Scottish Widows, said: "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.

"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."