Scottish Widows has announced the first investments through its UK venture growth portfolio via the CG Scottish Widows Growth Long-Term Asset Fund (LTAF), connecting workplace pension savings with UK-based tech companies.

The initial investments are set to target science and technology companies operating in areas including quantum computing, advanced battery technology and artificial intelligence (AI)-enabled healthcare.

Aberdeen Investments, which manages the growth sub-fund for Scottish Widows, appointed IP Group to manage the portfolio.

Scottish Widows said the fund is among the first UK pension schemes to actively allocate members’ capital to UK venture growth by connecting patient institutional capital with high-potential British businesses, helping bring private market exposure to workplace pension savers.

Commenting on the development, Scottish Widows chief investment officer, Peter Fitzgerald, said: “We believe pension savers should be able to benefit from the growth and innovation taking place across the UK.

“Our proposition helps connect our workplace pension customers' long-term savings with some of Britain's most innovative, high-growth companies, giving them access to investment opportunities that have traditionally been available mainly to institutional investors.”

Initial investments are expected to include quantum computing firms Oxford Quantum Circuits and Quantum Motion, battery technology company Nyobolt, and healthcare and drug discovery business Genomics Limited.

Aberdeen Investments head of private markets solutions, Nalaka De Silva, commented: “The UK has no shortage of scientific excellence and does not lack entrepreneurship or talent to develop globally relevant ideas.

“What competitive companies have lacked is sufficient pools of patient domestic capital to help them expand and grow. This partnership turns intent into investment.”

IP Group plc chief executive officer, Greg Smith, added: “We are helping create a pathway for millions of pension savers to participate in the value created by the next generation of technology leaders.”

He said the fund's initial UK investments span quantum computing, clean energy and healthcare, “sectors where the UK has the potential to build globally significant companies”.

“We believe this is only the beginning of a much larger opportunity to unlock growth, support economic prosperity and deliver attractive long-term returns for savers,” he said.

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