BNP Paribas Asset Management (BNPP AM) today announced their selection by Scottish Widows as a long-term strategic and founding partner of Scottish Widows’ new UK domiciled, open-ended Long-Term Asset Fund (LTAF) that will offer Workplace Savers access to private markets.
BNPP AM will manage a Diversified Private Credit Portfolio that will initially invest in a multi-currency, multi-asset portfolio incorporating infrastructure debt, corporate debt and credit risk sharing, expanding into additional sleeves as the allocation grows, potentially including, but not limited to, commercial real estate debt, Dutch mortgages, direct corporate loans, ABS1 and CLOs2. The Portfolio will be launched in H2 2025 subject to regulatory approval. ESG will be embedded within the investment proposition with a focus on society’s net zero, environmental and energy transition aspirations.
BNPP AM offers a differentiated bespoke product by utilising its Solutions and Client Advisory division to design and structure the solution, drawing on the broad capability of the BNP Paribas Group. BNP Paribas Asset Management will offer enhanced ESG credentials, liquidity management, FX hedging, asset origination and relative value asset allocation. The governance of the new fund will be through a strategic partnership between Scottish Widows and BNPP AM to ensure the strategic asset allocation remains suitable and appropriate for members and that emerging opportunities are captured over time.
Roger Miners, CEO of BNP Paribas Asset Management UK said: “BNPP AM’s business philosophy is anchored towards a sustainable transition, values that we share with Scottish Widows. This partnership will ensure that Scottish Widows workplace savers will not just obtain exposure to private markets but within that to emerging environmental and energy transition related transactions and technologies. This will allow savers to help finance a just transition and benefit from the returns that this can generate.”
Philip Dawes, Head of Distribution (UK & Ireland) at BNP Paribas Asset Management said: “We are excited to be given the opportunity to work with Scottish Widows to design and structure a solution that will offer members diversification, lower volatility, enhanced returns and ESG benefits. BNPP AM is aligned with Scottish Widows in wanting to democratise private markets to allow DC savers to benefit from the characteristics that they offer and have been focused on helping the UK market develop in an efficient and innovative way in this respect, for many years.”
Chira Barua, CEO of Scottish Widows and CEO Insurance, Pensions and Investments at Lloyds Banking Group said, “Chira Barua, CEO of Scottish Widows, said: “Private assets can be an attractive component of a modern portfolio structure for helping our customers achieve good outcomes in retirement. It’s also a brilliant win-win as it supports economic growth by providing funding to companies with bespoke financing requirements. As one of the UK’s largest workplace pension providers and part of a group whose core purpose is helping Britain prosper, this is an important building block in our endeavour to offer the most distinctive pension proposition in the UK.”
[1] Assets backed securities
[2] Collaterized Loan Obligations
– ENDS –
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Private assets do, however, require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid.
This press release and the information included herein is intended exclusively for use by journalists or other members of the media acting in their professional capacity. It is intended solely to provide them with general information and enable them to have an overview of the funds described herein for the purposes of their own independent editorial. It may relate to funds that are not authorised for distribution in the country in which it is being issued. It does not constitute an offer or solicitation, nor may it be treated as such in any jurisdiction in which such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such an offer or solicitation. BNP Paribas Asset Management assumes no liability whether direct or indirect that may result from using any information contained in this document. In no circumstances may BNP Paribas Asset Management be held liable for any decision taken based on this information.
Media contacts
Sophie Lund-Yates, UK Media Relations
07467448819/ Sophie.lundyates@bnpparibas.com
About BNP Paribas Asset Management
BNP Paribas Asset Management (‘BNPP AM’) is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable returns for its clients, based on a sustainability-driven approach. BNPP AM focuses its expertise on five core capabilities – Private Assets, High Conviction Active Strategies, Emerging Markets, Systematic, Quantitative & Index and Liquidity Solutions – with investment processes incorporating quantitative, ESG and fundamental research. These capabilities can be combined into multi-asset solutions aligned with our clients’ goals.
Sustainability is core to BNPP AM’s strategy and investment philosophy. Among the leaders in thematic investment in Europe1, BNPP AM intends to contribute to a successful Energy transition, healthy Ecosystems, and greater Equality in our societies (our “3Es”). BNPP AM currently manages EUR 602 billion of assets (EUR 712 billion of assets under management and advisory) and benefits from the expertise of more than 500 investment professionals and around 400 client servicing specialists, serving individual, corporate and institutional clients in 67 countries.
Source: BNPP AM, as of 31 March 2025
[1] Source: 2nd in Europe on sustainable thematic strategies, according to an analysis made by BNP Paribas Asset Management based on Morningstar data as at 31/12/2024.
