Q1 2023 Quarterly Net Asset Value – 31 March 2023

Schroder BSC Social Impact Trust

22 June 2023

 

Schroder BSC Social Impact Trust plc

Q1 2023 Quarterly Net Asset Value - 31 March 2023

The Board of Schroder BSC Social Impact Trust plc (the "Company"), which provides a unique investment opportunity to help address UK social challenges, today announces its unaudited net asset value ("NAV") as of 31 March 2023. This is the first of a series of quarterly NAV announcements the Company plans to make, introduced to provide more timely and transparent information for shareholders.

Key Highlights

·    NAV of £88.9m or 104.49p per share as of 31 March 2023, a decrease of 1.28% relative to the NAV per share as of 31 December 2022 (105.84p).

·    Decline in NAV due to a write-down in the Bridges Evergreen Holdings (BEH) fund partially offset by positive contributions from the other holdings in our High Impact Portfolio and Liquidity Assets

·    As of 31 March 2023, 98% of our capital was committed to High Impact Investments, and 86% was deployed. During the quarter:

o  £2.4m of capital was drawn, mainly into High Impact Housing investments via Man Community Housing Fund and Social and Sustainable Housing (SASH).

o  £1.0m of capital was returned via the partial exit from the Resonance Real Lettings Property Fund (RLPF1), delivering an exit IRR during Company ownership of 8.0%

·    Following the realisation of capital from RLPF1 and the cancellation of unused commitments, and net of capital used for share buybacks to date, the Company has c. £2.5m of uncommitted capital, held to invest in further High Impact Investment opportunities or provide flexibility for further share buybacks. The Portfolio Manager continues to review an active pipeline of new and follow-on High Impact Investments.

·    Capital awaiting deployment and uncommitted capital, held in Liquidity Assets and Money Market Funds, enhanced returns for the quarter.

·    The portfolio continues to deliver strong positive impact for vulnerable and disadvantaged people in the UK. Our second annual Impact Report will be published at the end of June 2023.

·    The Company will publish an Investor Update in July 2023, and the next NAV in Q3.

Portfolio and performance overview

Valuation methodology

·    NAV figure based on quarterly management reporting as of 31 March 2023 for 8 of our 10 High Impact Portfolio holdings, representing approximately 80 per cent of the portfolio valuation.

·    The two funds managed by Bridges Fund Management Limited ("Bridges"), Bridges Evergreen Holdings (BEH) and Bridges Social Outcomes Fund II, are currently undergoing the audit process for their 31 March 2023 financial year end. The valuation included in this report for these two funds, representing approximately 20 per cent of the portfolio valuation, is based on December 2022 quarterly management reporting, adjusted for known cash movements in the quarter and draft unaudited information from Bridges.

Performance drivers

·    The High Impact Portfolio had a negative contribution of 1.55p to the change in NAV/share; by asset class:

o  Debt and Equity for Social Enterprises had a negative 1.83p contribution to NAV/share, due to a write down during the quarter in the BEH portfolio which resulted from changes to public sector service provision to young adults; this was partially offset by positive contributions from other investments.

o  High Impact Housing had a positive 0.27p contribution to NAV/share, mainly driven by a write-up of the CBRE property portfolio, as new developments reached practical completion.

o  Social Outcomes Contracts held stable over the period, at the December 2022 valuation, while we await audited reporting from Bridges as of 31 March 2023.

·    Liquidity Assets had a positive contribution of 0.44p to NAV / share in the quarter.

·    Fees and expenses accounted for 0.28p per share for the quarter, equivalent to an annualised ongoing charges rate of 1.08%.

Share buyback programme

·    As announced in the Half Year Report published in March 2023, the Board commenced a share buyback programme with the aim of narrowing the discount at which the shares were trading to NAV. It is the Board's stated objective to grow the Company in order to deploy fresh capital into high impact social enterprises. This can only be accomplished if the shares trade above NAV.

·    A total of 263,331 shares were purchased during the quarter and are held in Treasury. Since the end of the quarter, a further 448,389 shares were purchased, bringing the total number of treasury shares to 711,720 as of 20 June 2023.

For further information, please contact:

Schroders
Augustine Chipungu (Press) Kerry Higgins (Schroder Investment Management Limited, Company Secretary)	0207 658 2016 202 7658 6189
Big Society Capital
Emma Hickinbotham, Managing Director, Communications	[e-mail]
Winterflood Securities Limited	020 3100 0000
Neil Langford

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 is the UK's leading social impact investor. Our mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. We do this by investing our own capital and helping others invest for impact too.

Since 2012, we have helped build a market that has directed more than £8 billion into social purpose organisations tackling issues from homelessness and mental health, to childhood obesity and fuel poverty, a ten-fold increase in ten years.

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

About Schroders plc

Schroders plc

The history of Schroders began in 1804 when JH Schroder became a partner in J.F. Schröder & Co, a London-based firm founded by his brother JF Schroder. It has evolved since then into the company today known as Schroders plc. Throughout that time, the Schroder family have maintained a significant interest in the business, which the Company believes has been a significant benefit to it. Today, the interests of some members of the Schroder family (being certain descendants of the late Helmut Schroder and, in some cases, their spouse or former spouse) are spread across a number of parties, who are collectively known as the Principal Shareholder Group. The Principal Shareholder Group is comprised of a number of private trustee companies (and investment companies controlled by those trustee companies), a number of Schroder family individuals, and a Schroder family charity which, directly or indirectly, are Shareholders in the Company. The current aggregate Principal Shareholder Group holding the Schroders plc shares is 44.11%.

Schroders is global investment manager offering a distinctive set of advice and investment capabilities. Their business is organised across two segments - asset and wealth management - with four distinct business offerings. In Asset Management their Schroders Investment Management business offers active management across a full range of asset classes through mutual funds and institutional mandates. This is now supplemented by a complete private assets business, Schroders Capital, whilst Schroders Solutions brings their public and private asset management capabilities together to offer complete investment solutions to institutional clients. Schroders Wealth Management offers advice across the wealth spectrum through their various brands.

Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority.  For regular updates by e-mail please register online at www.schroders.com for our alerting service.

 

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