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.
Click below to learn more about each investment area or scroll down to our interactive impact map and case studies to view where our investments are having an impact in an area near you.
Social need: There is a chronic shortage of affordable and social housing in the UK. 92% of local authorities are not meeting their affordable housing needs, with 1.1 million people remaining on housing waiting lists. This has led to more than 320,000 people experiencing homelessness in the UK in 2019. The housing crisis disproportionately affects those who are most disadvantaged in our society and those with additional care or support needs e.g. 64% of those referred to refuges were turned away in 2018-2019.
Solution: The Company invests in funds that benefit more vulnerable groups (those who have experienced homelessness or survivors of domestic abuse) and affordable housing for lower income groups.
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 to satisfy their existing working capital requirements.Traditional finance providers do not always understand how to address these financial needs.
Solution: The Company invests in debt solutions for charities and social enterprises targeting high social impact interventions for more disadvantaged groups. These solutions include charity bonds, co-investments in portfolios of secured loans and mezzanine debt funds with some equity that invest in established social enterprises.
Social need: Public services have traditionally been contracted in a prescribed method that is focused on payments for activitiies with mixed attention on desired outcomes and impact for people.
Solution: The Company invests in funds or direct opportunities that provide capital for expert charities and social enterprises to deliver government contracts with payments linked to the desired outcomes (across homelessness support, health, education, family therapy and children's services) to achieve better impact for vulnerable people and provide better value for money for public funds.