Schroder BSC Social Impact (SBSI)

The management team behind Schroder BSC Social Impact (SBSI) aim to provide investors with two outcomes from the trust: capital growth and income, and a positive social impact, through a multi-asset Portfolio of investments in assets such as affordable housing for vulnerable people or community energy projects that create employment opportunities and renewable power. As such, the trust is one of the first to adopt the FCA’s Sustainability Impact label, demonstrating the portfolio delivers a measurable social outcome (see ESG).

These factors already make SBSI unique, which is further enhanced by the high proportion of private assets it is invested in, meaning investors are unlikely to be able to replicate the exposure elsewhere. This results in a portfolio of assets, ranging from bonds to housing, which have generated resilient returns, due to the high level of government backing. The managers look to manage the risk further by running the portfolio at net cash position, which has contributed to a low level of NAV volatility (see Performance).

As a result of strong investment income, the trust has increased its Dividend guidance from IPO from 1.2% to between 2% and 3% of NAV. The current level is towards the top end of this range. The trust is currently trading at a Discount to NAV that is over two standard deviations wider than its own history. This has meant the effective yield on the shares at present is significantly higher at c. 3.9%.