The Schroder BSC Social Impact Trust aims to be the first London-listed investment company to deliver “measurable positive social impact as well as long term capital growth and income.”
It will invest in a portfolio of social impact funds and similar investments.
Social impact investment firm Big Society Capital Limited will be a partner in the trust and the portfolio manager. A specialist in this area, it has worked in social impact investing for a number of years.
The trust is being marketed to institutional investors, wealth managers, advisers and private investors in the UK.
Among the investments likely to be selected are high quality affordable housing for a wide range of groups, including people who have experienced homelessness or survived domestic violence, to low income renters currently living in poor quality or insecure accommodation.
The trust will also invest in debt for social enterprises, including charity bonds and social projects which produce an income.
Big Society Capital estimates that the investable high impact segment of the UK market will grow to £10bn to £15bn by 2025 and it is aiming to increase the size of the trust’s investments to £300m-£500m within five years.
The trust, if it reaches its target, will acquire from Big Society Capital seven assets: five impact funds and two co-investment debt portfolios.
The trust will aim to provide a Net Asset Value total return of CPI plus 2 per cent per annum - once the portfolio is fully invested and averaged over a rolling three to five-year period, net of fees. The company intends to pay distributions on an annual basis.
Susannah Nicklin, chair of the trust, said: “I am delighted that we are able to bring this social impact trust to the market at a time when the UK is facing some significant headwinds, particularly on social issues. This trust brings together the powerhouse of Schroders, a leading global asset manager, working alongside Big Society Capital, one of the UK’s leading impact investors.”
The prospectus has been published today with dealing in the shares due by 22 December if the flotation is successful.