Schroder BSC Social Impact Trust: Investing for Social Change and Financial Returns

Schroder BSC Social Impact Trust plc (SBSI) is an innovative investment vehicle that combines social impact with financial returns. By investing in high-impact assets and managers, SBSI offers investors the opportunity to create positive change while earning resilient financial returns. This article explores the unique approach of SBSI, its impact on vulnerable communities, and its potential for investors.
SBSI's diversified portfolio addresses entrenched social issues in the UK, focusing on tackling poverty and inequality, improving health and wellbeing, providing education, training, and decent work, and supporting a just transition to net zero. This diversification helps mitigate concentration risk and ensures that investments reach a wide range of communities.
One of SBSI's key initiatives is Thrive II, a social prescribing program supporting over 3,000 people with long-term health conditions in North East Lincolnshire. This program aims to improve health and wellbeing and reduce primary and secondary care usage. Another notable investment is Community Energy Together, which is forecast to generate £20 million in funding for five local communities, powering almost 13,000 homes and tackling issues like fuel poverty and climate action.
SBSI's approach to managing concentration risk aligns with its social impact objectives. By diversifying its portfolio across various geographical regions, industry sectors, and individual positions, SBSI ensures that its investments reach a wide range of communities. This strategy enhances the portfolio's resilience to economic cycles and contributes to its 8.2% Net Asset Value growth since inception.
For investors, SBSI offers an attractive combination of social impact and financial returns. Its focus on essential services and government-backed revenue sources provides stability through economic cycles, reflected in its NAV growth of 8.6% since inception (2.5% annualised). Additionally, SBSI's commitment to transparent impact reporting and engagement with shareholders fosters trust and encourages further investment.

In conclusion, Schroder BSC Social Impact Trust plc is an innovative investment trust that combines social impact with financial returns. Its diversified portfolio addresses entrenched social issues in the UK, while its approach to managing concentration risk ensures resilience and growth. For investors seeking to create positive change while earning resilient financial returns, SBSI offers an attractive opportunity.