CT UK Social Bond Fund – Foreword 2023

Insights

CT UK Social Bond Fund – Foreword 2023

Welcome to the 2023 Columbia Threadneedle UK Social Bond Fund Annual Impact Report, in partnership with The Big Issue Group. In the last year, the Fund has grown to a total of £396 million in assets under management and held 185 bonds from 127 issuers, continuing to invest in issues generating positive social and environmental impact.

The Fund aims to support more inclusive and sustainable development and growth in the UK: inclusive in terms of reaching disadvantaged groups as well as balancing out geographical disparities. This goal is even more pertinent in light of the cost-of-living crisis that has prevailed throughout this year. The 2022 mini budget added to the economic uncertainty that has been felt across the financial markets and people’s lives. Within this challenging context, the Fund has increased the investment allocation to high-impact rated bonds to £170 million.

Since its launch in 2013, the Fund has been investing to address the main areas of social need where social exclusion is particularly evident. It is also these key outcome areas that further contribute to social inequality in the future. The affordable housing and property outcome area is a case in point: with a shortage of social housing, there is vast inequality in access to quality housing in the UK. At the same time, growing rents in the private sector pull low-income households below the poverty line. As such, the investments are assessed in terms of direct outcomes and the potential prevention of future disparity.

The Fund’s social focus means its impact is all about the people affected by socio-economic and environmental issues. Since last year, the Fund’s impact assessment has considered the main groups and communities targeted and experiencing change from its investments.

As part of its engagement, the Fund team has also been encouraging issuers to capture the stories and experiences of those target populations.

The Fund also considers environmental investments from this perspective: for instance, investments in the Utilities and the Environment outcome area are assessed on how they support the disadvantaged communities, customers and employees while striving to achieve their environmental goals, such as reduced pollution or the net zero transition.

Beyond investment, Columbia Threadneedle recognises its role in driving innovation in the sector: it has campaigned for the International Capital Market Association (ICMA) to include people at risk because of climate change and transition projects that cause or exacerbate socio-economic inequity as an additional vulnerable group in the 2023 Social Bond Principles. As part of this broader engagement, CT is a member of the Just Transition Challenge, a flagship initiative by the Impact Investing Institute to mobilise more public and private capital into investments that support a just transition to net zero in the UK and other developed and emerging markets.

Download the full report

Read in-depth engagement case studies and learn how the portfolio holdings are making the greatest contribution sustainability themes. 

 

24 January 2024
Key topics
Related topics
Listen on Stitcher badge
Key topics
Related topics

Important information

For professional investors

For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group. This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness. In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

true
true

Important information

For professional investors

For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group. This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness. In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

Related Insights

25 January 2024

CT UK Social Bond Fund impact report 2023 - transport and communications infrastructure

The Fund invests in this outcome class to improve transport and communications infrastructure across the UK.
Read time - 3 min
25 January 2024

CT UK Social Bond Fund impact report 2023 - education, learning and skills

Supporting wider participation in higher education with a focus on promoting social mobility.
Read time - 3 min
11 May 2023

CT UK Social Bond Fund - education, learning and skills

Discover how the strategy seeks to make investments that contribute to widening participation and expanding access to education.
Read time - 3 min
3 March 2023

CT UK Social Bond Fund - The Big Issue Group

For over 30 years, The Big Issue has been at the forefront of social activism, working to dismantle poverty by creating opportunity.
Read time - 3 min
3 March 2023

CT UK Social Bond Fund - Foreword 2022

Welcome to the 2022 Columbia Threadneedle UK Social Bond Fund Annual Impact Report.
Read time - 3 min
3 March 2023

CT UK Social Bond Fund - Financial inclusion

The shortage of affordable housing is still a critical issue for the sector.
Read time - 3 min

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Funds and Prices

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Investment Strategies

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.

Thank you. You can now visit your preference centre to choose which insights you would like to receive by email.

To view and control which insights you receive from us by email, please visit your preference centre.

Woman listens to music through headphones
Play Video

CT Property Trust- Fund Manager Update

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium