Loading…
This article covers information on Schroder BSC Social Impact Trust.
LON:SBSISchroder BSC Social Impact Trust (SBSI) has published its Annual Report for the year to 30 June 2025. The headline numbers show modest NAV growth, a higher dividend, and further pressure on the share price – prompting a full strategic review. Here is what matters for investors, in plain English.
| NAV per share | 102.94p (30 June 2025) |
| NAV total return (FY25) | +1.6% |
| NAV total return since inception | 12.0% (2.5% annualised) |
| Share price total return (FY25) | -7.4% |
| Average discount to NAV (FY25) | 24.7% |
| Dividend declared | 3.76p, payable 19 December 2025 |
| Yield on NAV / on share price | 3.65% / 5.45% (as at 28 Oct 2025 share price) |
| Net assets | £83.49 million |
| Cash and money market funds | £10.07 million |
| Commitments to impact investments | 98% of NAV (84% invested; 17% in liquidity assets) |
NAV total return was +1.6%, supported by robust income but offset by write-downs in high impact housing as valuers pushed discount rates higher. The trust recorded net revenue of £3.40 million (4.15p per share), up from £2.65 million, while fair value losses of £2.17 million pulled back the total return to £0.92 million (1.13p per share).
Important context: the trust targets CPI +2% per annum over time. With CPI at 3.6% in the period, SBSI did not meet that target. Management points to inflation caps in social housing leases, higher discount rates, and timing lags as reasons – and expects benefits from the higher-rate environment to filter through over time.
The Board declared a 3.76p dividend, payable on 19 December 2025. That is above the 2-3% yield-on-NAV guidance due to a one-off income distribution from Bridges Inclusive Growth Fund linked to the AgilityEco exit. It is wholly designated as an interest distribution.
Opinion: welcome income in a tricky year, but investors should treat the uplift as non-recurring. The underlying revenue trend is improving, yet the 2025 dividend level was helped by a special item.
The share price fell over the year, leaving an average discount of 24.7% to NAV and a share price total return of -7.4%. The Board repurchased 1.93 million shares for £1.47 million, reducing shares in issue to 81.10 million. Despite this, the discount remains entrenched. As a result, the Board launched a strategic review and shareholder consultation and is “evaluating potential fund structures and alternatives”. An update will be provided at or before the AGM on 17 December 2025.
Crucially, SBSI has a continuation mechanism: if the average discount exceeds 10% over a two-year period, a continuation vote is triggered. The current two-year test runs to 31 December 2025, and with a 22.8% average discount since 1 January 2024 to the report date, a vote will likely be triggered. The Board plans a general meeting before the 2026 AGM to table recommended proposals on the Company’s future.
Opinion: the review is the right move. Persistent double-digit discounts across alternative trusts have been a feature of the market, but a 20-25% discount for SBSI is hard to ignore given the portfolio’s steady income and the ability to exit assets at NAV. Expect discount management, structure and liquidity to be front and centre in December’s update.
On impact, SBSI has now committed £96 million to more than 190 frontline organisations, reaching 422,000 people since launch – at least 98% of whom are underserved and disadvantaged – and generating £238 million of public and household savings and benefits. The trust adopted the FCA’s “Sustainability Impact” label in December 2024, which sets expectations for impact measurement and reporting.
Government policy could be helpful. The year saw the creation of the Social Impact Investment Advisory Group and, in July 2025, the £500 million Better Futures Fund to back social outcomes partnerships focused on vulnerable children and families. Subject to the strategic review, the Company may be well placed to engage with such opportunities.
Net assets fell from £86.46 million to £83.49 million, largely due to £2.42 million of dividends and £1.47 million of buy-backs exceeding the net return. Liquidity improved: cash and money market funds stood at £10.07 million, with 17% of NAV in liquidity assets. Uncalled commitments were £11.83 million.
During the consultation, the manager will not make new commitments that extend portfolio maturity; repayments are being parked in money market funds. There is no gearing and no foreign exchange exposure.
This is a classic story of good impact and okay NAV progression meeting poor market sentiment for alternative trusts. The portfolio is doing much of what it says on the tin – generating income, exiting assets around NAV, and delivering social outcomes at scale. But the market wants liquidity and clarity. If the Board can present a credible plan in December to address the discount and future structure, there is real scope for rerating from here. Until then, expect the shares to trade on sentiment and progress updates rather than fundamentals alone.
Related
Polar Capital Technology Trust sees 102% NAV growth in FY2026, beating its benchmark by 47 points thanks to AI and semiconductor exposure.
JoshuaJuly 10, 2026
Last updated
Category
InvestingViews
31 viewsLikes
No ratings yet
Impax Q3 AUM rises to £23.3bn despite £1.7bn net outflows, driven by market gains and strong investment performance.
JoshuaJuly 10, 2026
MJ Gleeson FY2026 trading update: steady profits, mixed home sales with operational restructuring improving outlook.
JoshuaJuly 10, 2026
No comments yet - start the conversation.