The Schroder BSC Social Impact trust has adopted the “sustainability impact label” from the FCA’s SDR labelling campaign, applying to investment products that create a pre-defined positive measurable impact.
The trust was launched in 2020 and invests in social organisations and charities for people in need across the UK. In the past three years, Schroder Social Impact has lost 18.2% on its share price total return, compared to a sector average loss of 4.9%, according to the Association of Investment Companies. It currently trades at a 22.7% discount.
Currently, the trust has £84.1m in total assets, with its top holdings including a charity bond portfolio, Bridges Evergreen Holdings, and the UK Affordable Housing fund.
The FCA is offering four labels in total under its new regime, including Sustainability Focus, Improvers, Impact or Mixed Goals, designed to create a clearer categorisation of a fund’s goals. However, the system has faced some pushback within the industry, with some funds experiencing difficulty in adopting funds to fit the label, despite having a sustainable aim. The BlackRock Sustainable American Income trust opted to drop “Sustainable” from its name instead of applying for the label.
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Susannah Nicklin, chair of the board, said: “On behalf of the Social Impact Trust Board, I am delighted to announce that today the Company is adopting the ‘Sustainability Impact’ label introduced as part of the FCA’s Sustainability Disclosure Requirements. We believe that we are one of the first investment trusts to adopt this label since its introduction. By applying the label, we aim to demonstrate to investors both the rigour of our impact practice and our commitment to transparency.”
Portfolio manager Hermina Popa added: “The Social Impact Trust remains deeply committed to making investments targeting the reduction of poverty and inequality. We are proud to have helped positively impact thousands of people while delivering over £200 million in benefits for the public through savings to government and households since inception. We look forward to continuing our work delivering measurable social impact for disadvantaged people across the UK.”
