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Threadneedle UK Social Bond Fund

Pioneering a strong bond between social impact and consistent financial results

A pioneer in social bond investing. We launched the UK’s first daily liquid social bond strategy in 2014, followed by European and US based strategies, and have been a leading advocate of the burgeoning green and social bond markets.

The Threadneedle UK Social Bond Fund unlocks the full potential of bonds to deliver both financial returns and positive social outcomes.
To meet the twin fund objectives, bond investments are only included if proceeds deliver both a financial return and positive social impact. Bonds have the multiple advantages of scale, scope and ‘targeted’ ability to support highly social outcomes and impacts, while they are tradable and offer liquidity.
We actively allocate capital to outcomes that address real social needs predominantly in the UK, using a broad universe of bonds issued by corporates, government agencies, regional & local government bodies, mutuals and charities.
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Investment Week Sustainable ESG Awards 2021 Oustanding Contribution Simon Bond
Ratings as at 31.03.2022

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Social Investment Guidelines

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Threadneedle UK Social Bond Fund Overview

Overview

Strength in partnership

Our strong reputation across both bonds and social investment is enhanced by our partnership with The Big Issue Group, social entrepreneurs and a leader and innovator in backing sustainable social businesses.

Consistent track record in social bond investing

We have managed outcomes-focused social bond strategies for over five years and have delivered strong risk-adjusted returns for our investors.

Collaborative approach

The first Fund to unlock the full potential of bonds to deliver both financial returns and positive social outcomes. Using a dynamic social assessment methodology to guide investment decisions, the portfolio manager actively sources assets that combine clear social benefits with sound financial attributes.
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Reasons to invest

Strength in partnership

Our proven experience in both fixed income credit and responsible investment is enhanced by our social partnership with Big Issue Group, social entrepreneurs and a leader and innovator in backing sustainable social businesses in the UK.

The Big Issue Group, brings its expertise and reputation by:
  • Advising on our proprietary social classification methodology
  • Challenging our social assessments via a quarterly Social Advisory Panel independent panel
  • Producing an independent annual report
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Consistent track record in social bond investing

We have successfully managed outcomes-focused social bond strategies since 2013, and have invested in a range of strategies for clients in the UK, Europe and the US. (as at 31 July 2021).
We have managed out-comes focused social bond strategies for over five years and have delivered strong risk-adjusted returns for our investors.

Collaborative approach

The first Fund to unlock the full potential of bonds to deliver both financial returns and positive social outcomes. Using a dynamic social assessment methodology to guide investment decisions, the portfolio manager actively sources bonds that combine clear social benefits with sound financial attributes.

Positive Inclusion, Evidence-based Analysis & Engagement

We actively source bonds from the eight key social fields set by The Big Issue Group, targeting the most beneficial projects in the areas of most need, with geography being a key driver.

Eligible investments are ranked as high, medium or low intensity by our specialist Responsible Investment team, while our credit research analysts ensure investment ideas pass rigorous financial, ESG and liquidity tests for inclusion in the portfolio.

We actively engage with company managements to understand how their businesses work and take a proactive tole with both corporates and government in the development and growth of the social bond market.

Social performance

Read our Annual Social Performance Report, produced in conjunction with The Big Issue Group, to see how we are making a difference and meeting our impact objective of supporting a more inclusive and sustainable development in the UK.

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Annual Social Performance Report 2021

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Annual Social Performance Report 2020

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Annual Social Performance Report 2019

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Annual Social Performance Report 2018

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Annual Social Performance Report 2017

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Annual Social Performance Report 2016

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Annual Social Performance Report 2015

Insights

1 April 2022

Investment team updates - Market updates 1 April 2022

Latest news from around the investment desks.
Read time - 3 min
29 March 2022

Pauline Grange & Jess Williams

Portfolio Manager, Global Equities & Portfolio Analyst, Responsible Investment

Global Sustainable Outcomes - News & Views Q4 2021

Pauline Grange, Portfolio Manager, and Jess Williams, Portfolio Analyst, take a look at 2021 as a whole from a responsible investment point of view – from the COP26 conference and country and region responses to the climate crisis, to ongoing fossil fuel use and net-zero issues.
Read time - 12 min
23 March 2022

Responsible Investment Quarterly - Q4 2021

View the RI team's report from the fourth quarter of 2021
Read time - 15 min
4 March 2022

Investment team updates - Market updates 4 March 2022

Latest news from around the investment desks.
Read time - 3 min
16 February 2022

Benjamin Kelly

Senior Analyst, Global Research

Asset TV: Environmental Social and Governance (ESG) Masterclass

Ben Kelly, Senior Thematic Analyst, joins a panel of experts to discuss the current hot topics in sustainable investing, including the impact of digitisation on decision-making and whether current market conditions offer an attractive entry point.
Watch time - 47 min
7 February 2022

Responsible investment: themes to look out for in 2022

Our RI Research and Stewardship Team look at the key themes they think will be in play as we go through 2022, and the opportunities and challenges that will arise within them.
Read time - 5 min

Explore fund details

Fund Manager

Simon Bond
Director of Responsible Investment Portfolio Management

Get in touch

Contact our sales support team

Contact our regional sales team

Telephone

0207 464 5855*
 
*Please note calls are recorded

Find your local sales representative

Find out more

Telephone

0207 464 5855*
 
*Please note calls are recorded

Contact our regional sales team

Important Information​

Key risk

Past performance is not a guide to future returns and the fund may not achieve its investment objective. Your capital is at risk. The value of investments can fall as well as rise and investors might not get back the sum originally invested. The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities. Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Inflation is likely to affect the value of capital and income over time. Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa. The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions. The fund invests in securities whose value would be significantly affected if the issuer either refused to pay or was unable to pay or perceived to be unable to pay. The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities. Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Inflation is likely to affect the value of capital and income over time. Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa. The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions. Please read the Key Investor Information Document and the Fund Prospectus if considering investing.

Threadneedle Opportunity Investment Funds ICVC (“TOIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Conduct Authority (FCA) as a Non – UCITS scheme. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. The dealing price may include a dilution adjustment where the fund experiences large inflows and outflows of investment. Further details are available in the Prospectus. Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. The above documents are available in English only and may be obtained free of charge on request from Threadneedle Investments at PO Box 10033, Chelmsford, Essex CM99 2AL. Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority (FCA). Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.