Investor update

RNS Number : 9173B

Schroder BSC Social Impact Trust

17 February 2022

 

Schroder BSC Social Impact Trust plc

Investment Update - New Commitments Bring Portfolio to Fully Committed

The Board of Schroder BSC Social Impact Trust plc (the "Company"), which provides a unique investment opportunity to address UK social challenges, is pleased to announce that the net proceeds of the Company's initial public offering as well as the placing last November are now fully committed.

The Company has made three new commitments:

The Community Investment Fund (CIF)

The Company is making a new investment in the Debt for Social Enterprises asset class, through the acquisition of a stake in TheCommunity Investment Fund (CIF), from the Social Investment Business (SIB) for a transaction value of £4.5m. CIF is managed by Social and Sustainable Capital (SASC) and was established in 2014 with initial investment from Big Society Capital (BSC) and SIB. SIB is reducing its stake in CIF, with the aim of recycling the capital into seeding new funds and initiatives.

CIF makes secured loans to local charities and social enterprises and has a track record of delivering returns and impact. CIF holds a diversified portfolio of loans with exposure to community renewable energy, social and specialist supported housing, early years education and family support in the community. CIF's investments benefit more disadvantaged groups with a high proportion of revenue coming from government mandated sources.

Man GPM RI Community Housing Fund (MCHF) - Further Investment

In the High Impact Housing asset class, the Company is making a follow-on investment of £5m in the Man GPM RI Community Housing Fund (MCHF) which supports those people who are underserved by the current housing rental and purchase market, with a focus on those earning the median income and below, including young families and key workers.

MCHF has a target of achieving 70% affordable housing (tenures include social rent, affordable rent, key worker rent, and shared ownership). Across the seven projects in contract, 793 homes will be delivered with c.90% of those being an affordable tenure*. Early evidence indicates the fund will perform in accordance with the original investment and impact thesis. Most notably, the fund is deploying capital faster than originally anticipated and early projects and pipeline demonstrate strong early alignment with its impact goals.

Charity Bond Portfolio - Additional Commitment

Also in the Debt for Social Enterprises asset class, the Company is increasing its allocation to the Charity Bond Portfolio managed by Rathbones by £1.6m.

The Company's £14.83m charity bond portfolio managed by Rathbones consists of nine bonds across a number of sectors, tenures, and issuance sizes. This £1.6m top-up will enable further investments and thus greater diversification. These investments will be targeted according to the key investment criteria of the Company; organisations with established track records of delivering high social impact to disadvantaged groups with strong balance sheets and historically resilient revenue from government sources.

*Discounted rent (social, affordable or key worker) or discounted home ownership (shared ownership)

The latest Investor Update can be found on the Company's website and at the following link: https://www.schroders.com/en/sysglobalassets/investment-trusts---private-investors/schroder-bsc-social-impact-trust/2022/sbsi-feb-2022-investors-update_vf.pdf 

Jeremy Rogers, CIO of Big Society Capital, Portfolio Manager, Schroder BSC Social Impact Trust, said:

"We are pleased to have fully committed the proceeds of the recent raise ahead of plan across a diverse mix of investments delivering high quality returns alongside high impact for more disadvantaged groups. Our portfolio investments are already helping to benefit over 150,000 people across the UK in areas such as homelessness, domestic abuse, fuel poverty and children services.

We continue to see a strong pipeline developing that fits with the Social Impact Trust's strategy of delivering high impact through experienced local enterprises alongside good risk adjusted returns with low correlation to mainstream markets."

For further information, please contact:

Schroders
John Spedding Estelle Bibby (Press)	0207 658 3206 0207 658 3431
Big Society Capital
Georgette Harrison/Emma Hickinbotham, Senior Communications Directors (job share)	[e-mail]
Winterflood Securities Limited	020 3100 0000
Neil Langford Chris Mills

About Schroder BSC Social Impact Trust plc

The Company was launched in December 2020, with the objective to enable access to high social impact investment opportunities in private markets - tackling social challenges across the UK. The Company aims to build a diversified portfolio across asset classes, targeting sustainable returns, demonstrable social impact, and low correlation to traditional public markets.

Further information about the Company can be found on its website at  www.schroders.com/SBSI

About Big Society Capital

Big Society Capital exists to improve the lives of people in the UK through social impact investing. We unite ideas, expertise and capital to create investment solutions for the UK's social challenges, supporting organisations that deliver both positive social impact and sustainable financial returns. So far, we have helped channel £2.5 billion* into investments tackling a wide range of problems such as homelessness, mental ill health, and childhood obesity.

To widen access to social impact investing, we have partnered with Schroders, a global asset and wealth manager, to launch the listed Schroder BSC Social Impact Trust plc. As the portfolio manager, we provide investors with high impact investments that contribute to solutions to social challenges alongside targeting long-term capital growth and income.

Further information about Big Society Capital can be found at   www.bigsocietycapital.com

*As at 30 September 2021

About Schroders plc

As a global investment manager, we actively and responsibly manage investments for a wide range of institutions and individuals, to help them meet their financial goals and prepare for the future. The world is forever changing, and with our clients at the centre of everything we do, we understand the need to continue to adapt and evolve our business in line with what matters most to our clients today, and in the future.

Our ongoing success is built on a history of experience and expertise, whereby we partner with our clients to construct innovative products and solutions across our five business areas consisting of Private Assets & Alternatives, Solutions, Mutual Funds, Institutional and Wealth Management and invest in a wide range of assets and geographies. By combining our commitment to active management and focus on sustainability, our strategic capabilities are designed to deliver positive outcomes for our clients.

We are responsible for £700.4 billion (€815.8 billion/$967.5 billion)* of assets for our clients, which are managed locally by 42 investment teams worldwide. As a global business with over 5,500 talented staff across 37 locations, we are able to stay close to our clients and understand their needs. We have over 200 years of experience in investment and innovation and remain committed to creating a better future by investing responsibly for our clients.

Further information about Schroders can be found at   www.schroders.com .

*As at 30 June 2021

 

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