Schroders and Big Society Capital are to launch the Schroder BSC Social Impact Trust, an investment trust addressing social issues in the UK.
Schroders and BSC are seeking to raise £100 million, via an initial public offering.
Schroders says the trust’s objective is to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments.
The trust provides a diversified private market impact portfolio with a low correlation to traditional and public financial markets. It aims to deliver a net asset value total return of CPI plus two per cent per annum. It seeks to invest across a range of issues including tackling the significant increase in homelessness, providing support for people with learning disabilities, providing housing for survivors of domestic abuse as well as enabling improved access to quality care services for physical and mental health conditions.
The trust offers investors an opportunity to benefit from a seed portfolio with an aggregate valuation of £40 million on an invested basis, plus outstanding commitments such that the aggregate value on a total commitment basis is approximately £60 million, reducing ramp up time and cash drag by providing swift investment exposure to hard-to-access assets. The strategy is underpinned by the combined expertise of a global asset manager in Schroders and BSC, one of the UK’s leading impact investors.
Big Society Capital specialises in social impact investing; its main focus is to deliver sustainable financial returns and a measurable positive impact on people’s lives in the UK.