Last month marked the first year anniversary of the Threadneedle UK Social Bond Fund which has reached over US $100m in assets under management. The fund has returned 11.8% gross, delivering on its aim to achieve an annual gross return in line with that of a UK sterling corporate bond index.
Launched in January 2014 in partnership with Big Issue Invest, the Threadneedle UK Social Bond Fund was created to address the need for suitable products for individuals looking to make social investments - products that will enable investors to place their money in funds with a positive social screen. The portfolio invests in 80 bonds from 59 issuers covering several social impact areas such as health & social care, education, employment and housing. Since its launch, it has received a steady inflow from retail and institutional investors, most recently from the City of London which invested £1m in November last year. This was preceded by an allocation of £40m by Warwickshire County Council in October.