UK Social Bond Fund

Launched in January 2014, in partnership with Big Issue Invest, the Threadneedle UK Social Bond Fund was the first mainstream investment fund that set out to achieve both an investment return and a positive social outcome by investing in bonds issued by organisations that support social and economic development in the UK.
The Fund has generated strong performance for investors and has also fulfilled its promise of delivering positive social outcomes, bringing investment to some of the UK’s most deprived sectors and regions. The Fund’s investments have supported the likes of Charities Aid Foundation in enhancing their work with donors and charities, Cardiff University in helping fund an innovation campus and Manchester University in supporting the development of a new Cancer Research Centre.

About the fund

The Fund aims to achieve total return (by way of income and capital appreciation) through investments which aim to support socially beneficial activities and developments, in eight areas: affordable housing, education, employment and training, health and social care, financial inclusion, community services, transport and communication infrastructure, utilities and the environment.

Key reasons to invest

  • Diversified bond portfolio targets particular social outcomes and aims to generate attractive risk-adjusted returns in line with UK corporate bond
  • Partnership between Big Issue Invest, a leader and innovator in backing social businesses, and Columbia Threadneedle Investments, an established asset management group with a strong reputation across both bonds and social investment
  • Dynamic and innovative Social Assessment Methodology guides investment decisions
  • Mainstream investment strategy with daily liquidity that can appeal to a broad institutional and retail investor base
  • Targeting investment grade returns to achieve social outcomes

Key Facts

Average Credit rating
Typically single-A rated bonds
Liquidity
The strategy provides investors with daily liquidity
Duration
Maximum duration of +/- 2 years relative to benchmark
Number of holdings
We hold a diversified range of securities in the portfolio
AMC
0.30%
OCF* (for the ‘Z’ share class)
0.45%
Average Performance
Year to date the Fund has performed in line with a typical corporate bond fund.
Lead Portfolio Manager
Simon Bond
Launch date
January 2014
Peer Group
IA UK Corporate Bond
Authorised corporate director
Threadneedle Investment Services Limited
Investment manager
Threadneedle Asset Management Limited

*Source Columbia Threadneedle Investments as at 25 Nov 2017.

Documents

PDF

Annual Social Performance Review 2020

PDF

Quarterly Fund Commentary – Q1 2020

PDF

Quarterly Fund Commentary – Q4 2019

PDF

Press Release – UK’s first mainstream social investment fund partnered with Big Issue invest, celebrates third anniversary

PDF

Annual Social Performance Review 2019

PDF

Title: Annual Social Performance Review 2018

PDF

Annual Social Performance Review 2017

PDF

Annual Social Performance Review 2017 – Summary

PDF

Annual Social Performance Review 2016

Awards

UK social bond awards

Investing with Impact Summit 2018

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