A fund that should give good returns from investing in good deeds

Schroders BSC Social Impact Trust has made a solid start and looks more attractive than it did at launch, says Max King.

Kids playing with balls
SBSI helps support a wide range of community projects
(Image credit: © Alamy)

When Schroders BSC Social Impact Trust (LSE: SBSI) launched in December 2020, the returns it was offering – 2% over the consumer price index (CPI) inflation rate over the long term – looked unattractive. But now, with the latest CPI figure at 9% and set to go higher, interest rates still at derisory levels and bond yields not much better, it looks more attractive.

Furthermore, SBSI’s annualised rate of return has been a better than expected 7%. The trust raised £75m at launch, but performance and further issuance has increased assets to £90m. “Our aim is to get to £300m-£500m, which will bring the expense ratio down from 1.06%,” says manager Jeremy Rogers.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.