Portfolio in focus
Schroder BSC Social Impact Trust plcA diversified portfolio with demonstrable local social impact
The Schroder BSC Social Impact Trust invests in a diversified portfolio which we believe can deliver high social impact alongside good risk adjusted returns to investors, with low correlation to mainstream markets. Our portfolio spans across the UK with a focus on three primary areas.
High Impact Housing | Debt for Social Enterprises | Social Outcomes Contracts |
Social need: There is a chronic housing shortage in the UK. It’s estimated that £16.9 billion is needed every year for the next ten years to adequately respond to the chronic shortage of social and affordable housing. The housing crisis disproportionately affects those who are most disadvantaged in our society and those with additional care or support needs. | Social need: Shifts in public services and consumer behaviours create the need for new products, services and employment opportunities that may, alternatively, be delivered by impact-led social enterprises These social enterprises need capital to grow and traditional finance providers do not always understand how to address these financial needs. | Social need: Public services have traditionally been contracted in a prescribed method that is focused on payments for activities with mixed attention on desired outcomes and impact for people. |
Solution: SBSI invests in funds that provide homes for more vulnerable groups (those who have experienced homelessness or domestic abuse, or have additional support needs) and affordable housing for lower income groups supported by different government funding streams. | Solution: SBSI invests in funds and co-investments that provide capital to charities and social enterprises targeting high social impact interventions for more disadvantaged groups, primarily funded by government backed revenues. | Solution: SBSI invests in funds or direct opportunities that provide capital for expert charities and social enterprises to deliver outcomes-based government contracts. This funding enables social organisations to achieve greater impact for vulnerable people and provide better value for money for the public. Projects are paid for the social outcomes they achieve, with the value to government and society from savings (e.g. through early action to reduce the need for high cost care services) significantly exceeding the level of payments. |
What are social outcomes contracts?
Social Outcomes Contracts can improve the way public services are delivered, maximising the outcomes for people using these services. Payments are only made once outcomes have been achieved, so social investors will provide working capital for enterprises to deliver contracts – often serving the most vulnerable, or people with complex needs. The investors are only repaid if the contracts deliver measurable improvements to people’s lives.
Nation/Region
Outcome area
Asset Class
SDG
Key for the Index of Multiple Deprivation
- 5
- Most Deprived
- 4
- Deprived
- 3
- Average Deprivation
- 2
- Less Deprived
- 1
- Least Deprived
- Current Investment
- Exited Investment