REG - Schroder BSC Social - Strategy Update

Schroder BSC Social Impact TrustAnnouncement

02/07/2025 07:00

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RNS Number : 2829P  Schroder BSC Social Impact Trust  02 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

2 July 2025

For Immediate Release

Schroder BSC Social Impact Trust plc

 

Strategy Update

 

Schroder BSC Social Impact Trust plc (the "Company") was launched in 2020 with
the investment objective to deliver measurable positive social impact as well
as long term capital growth and income, through investing in a diversified
portfolio of private market impact funds, co-investments alongside impact
investors and direct investments in order to gain exposure to private market
social impact investments. Since then, it has demonstrated how impact
investing can address social needs while providing resilient financial
returns.

Since IPO, the Board has had the ambition to reach greater scale to ensure the
long-term success of the Company. However, it has been difficult to expand the
shareholder base and grow the assets of the Company given the challenging
market conditions over recent years. As with much of the investment company
alternatives sector, the Company has endured an entrenched discount to NAV for
some time and attracting new investors has proved to be challenging. The Board
is aware that an inability to scale and the entrenched discount to NAV are
strategic issues that must be addressed.

In light of the above, the Board is considering carefully, with its advisers,
the options for the future of the Company. All strategic options to enhance
value for the Company's shareholders are being considered, which could include
an orderly realisation of the portfolio assets via a managed wind down
process. The Board will also (i) consult on whether some investors may wish to
retain exposure to the mandate and/or, directly or indirectly, to the assets
and (ii) consider the methods by which capital may be returned, in varying
circumstances. As part of this review, the Board will consult further with
shareholders in order to understand fully their perspectives and positions.

Portfolio liquidity

The Company's high impact portfolio is fully committed with low levels of
liquidity and a range of maturity dates. The Company has significant exposure
to long-dated investments, with approximately 60 per cent. 1  of the Company's
NAV currently committed to or invested in funds with a remaining maturity
profile of five years or more. The longest-dated investments in the portfolio
are expected to mature in nine years and as part of its strategic
considerations the Board will remain open to exploring options that could
realise value more quickly. In the context of the strategic options being
considered, the Board recognises that there is a balance to be struck between
providing early liquidity to shareholders and protecting long-term investment
performance, including impact performance.

The Board will instruct the portfolio manager not to make, for the duration of
the consultation period, any new investments that would extend the current
maturity profile of the portfolio.

Shareholder communications

The Board will undertake a shareholder consultation exercise over the coming
weeks to obtain shareholders' views on the strategic options available to the
Company. The Board recognises that it is not possible to meet with all
shareholders but is keen to ensure that all the Company's shareholders have
the opportunity to provide feedback. Shareholders are invited to provide
comments to the Chair of the Company at AMCompanySecretary@schroders.com
(mailto:AMCompanySecretary@schroders.com) , in particular on their priorities
for their investment in the Company and the matters described above.

The Board will provide further updates, as appropriate, in the coming months.

For further information, please contact:

Schroder BSC Social Impact Trust plc

Susannah Nicklin (Chair)

via AMCompanySecretary@schroders.com (mailto:AMCompanySecretary@schroders.com)

Schroders (AIFM and Company Secretary)

Charlotte Banks/Kirsty Preston (PR & Media)

Natalia de Sousa/Sunny Chou (Schroder Investment Management Limited, Company
Secretary)

+44 (0)20 7658 6000

 

Better Society Capital (Portfolio Manager)

 

Hannah Millard (Head of Communications)

hmillard@bettersocietycapital.com (mailto:hmillard@bettersocietycapital.com)

 

Susanna Hudson (Investor Engagement)

shudson@bettersocietycapital.com (mailto:shudson@bettersocietycapital.com)

 

+44 (0)20 3821 5905

 

Dickson Minto Advisers (Financial Adviser)

Douglas Armstrong

+44 (0)20 7649 6823

Winterflood Investment Trusts (Broker)

Darren Willis

+44 (0)20 3100 0000

Important Information

This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No 596/2014 as implemented in the
UK. The person responsible for arranging for the release of this announcement
on behalf of the Company is Susannah Nicklin, Chair.

Legal Entity Identifier (LEI): 549300PG5MF2NY4ZRM86

 

 1  As a percentage of the Company's most recently published NAV, being the
NAV as at 31 March 2025.

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