Annual Report and Financial Statements
For the year ended 30 June 2025
Schroder BSC Social Impact Trust plc
For the year ended 30 June 2025
Schroder BSC Social Impact Trust plc
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Schroder BSC Social Impact Trust plc
(the “Company”, “Social Impact Trust”, or “SBSI”)
The Company’s investment objective is 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 (“Impact Funds”),
separate accounts managed by third party asset managers (“Managed Accounts”), co-investments alongside such
funds or other impact investors (which may include the Portfolio Manager) (“Co-Investments”) and direct
investments (“Direct Investments”), in each case so as to gain exposure to Social Impact Investments. “Social
Impact Investments” are investments intended to have a positive social impact on people predominantly in the
UK while providing a financial return to investors, including, but not limited to, High Impact Housing, Debt and
Equity for Social Enterprises and Social Outcomes Contracts.
Investments will be selected for their ability to contribute towards the reduction of poverty and inequality as well
as addressing other critical social challenges in the UK.
The Company aims to provide a Net Asset Value total return of Consumer Price Index (“CPI”) plus 2% per annum
(once the portfolio is fully invested and averaged over a rolling three- to five-year period, net of fees) with low
correlation to traditional quoted markets, making a significant contribution to addressing social issues in the UK.
The impact of the Company’s investments and how the Portfolio Manager’s activities contribute towards
achieving a positive social impact will be measured and reported on at least annually.
to sign-up to receive regular updates on
Schroder BSC Social Impact Trust plc
(the “Company”, “Social Impact Trust”, or “SBSI”)
The Company’s investment objective is 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 (“Impact Funds”),
separate accounts managed by third party asset managers (“Managed Accounts”), co-investments alongside such
funds or other impact investors (which may include the Portfolio Manager) (“Co-Investments”) and direct
investments (“Direct Investments”), in each case so as to gain exposure to Social Impact Investments. “Social
Impact Investments” are investments intended to have a positive social impact on people predominantly in the
UK while providing a financial return to investors, including, but not limited to, High Impact Housing, Debt and
Equity for Social Enterprises and Social Outcomes Contracts.
Investments will be selected for their ability to contribute towards the reduction of poverty and inequality as well
as addressing other critical social challenges in the UK.
The Company aims to provide a Net Asset Value total return of Consumer Price Index (“CPI”) plus 2% per annum
(once the portfolio is fully invested and averaged over a rolling three- to five-year period, net of fees) with low
correlation to traditional quoted markets, making a significant contribution to addressing social issues in the UK.
The impact of the Company’s investments and how the Portfolio Manager’s activities contribute towards
achieving a positive social impact will be measured and reported on at least annually.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
Section 1: Strategic Report
Performance Summary 5
Key Performance Indicators 6
Theory of Change 8
Chair’s Statement 10
Portfolio Manager’s Report 12
Investment Portfolio 22
Impact Management 24
Business Review 25
Stakeholder Engagement 31
Principal Risks and Uncertainties 33
Viability and Going Concern Statement 37
Section 2: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 50
Nomination Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities 56
Section 3: Financial Statements
Independent Auditor’s Report 58
Income Statement 63
Statement of Changes in Equity 64
Balance Sheet 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 85
De nitions of Terms and Alternative
Performance Measures 87
Impact Methodology Notes 89
Shareholder Information 92
Information about the Company 94
Contents
1
05
40
82
58
Section 1: Strategic Report
Performance Summary 5
Key Performance Indicators 6
Theory of Change 8
Chair’s Statement 10
Portfolio Manager’s Report 12
Investment Portfolio 22
Impact Management 24
Business Review 25
Stakeholder Engagement 31
Principal Risks and Uncertainties 33
Viability and Going Concern Statement 37
Section 2: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 50
Nomination Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities 56
Section 3: Financial Statements
Independent Auditor’s Report 58
Income Statement 63
Statement of Changes in Equity 64
Balance Sheet 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 85
De nitions of Terms and Alternative
Performance Measures 87
Impact Methodology Notes 89
Shareholder Information 92
Information about the Company 94
Contents
1
05
40
82
58
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
2
Section 1: Strategic Report
2
Section 1: Strategic Report
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
3
Section 1: Strategic Report
Performance Summary 5
Key Performance Indicators 6
Theory of Change 8
Chair’s Statement 10
Portfolio Manager’s Report 12
Investment Portfolio 22
Impact Management 24
Business Review 25
Stakeholder Engagement 31
Principal Risks and Uncertainties 33
Viability and Going Concern Statement 37
Section 1: Strategic Report
Section 1: Strategic Report
Performance Summary 5
Key Performance Indicators 6
Theory of Change 8
Chair’s Statement 10
Portfolio Manager’s Report 12
Investment Portfolio 22
Impact Management 24
Business Review 25
Stakeholder Engagement 31
Principal Risks and Uncertainties 33
Viability and Going Concern Statement 37
Section 1: Strategic Report
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
4
Section 1: Strategic Report
4
Section 1: Strategic Report
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
5
Performance Summary
for the year ended 30 June 2025
Section 1: Strategic Report
Net Asset Value (“NAV”)
per share total return *
1.6%
Year ended 2024: 1.5%
Share price
77.50p
Year ended 2024: 86.75p
Share price total return *
–7.4%
Year ended 2024: –4.8%
Share price discount to
NAV per share *
24.7%
Year ended 2024: 16.7%
Revenue return per share
4.15p
Year ended 2024: 3.16p
NAV per share *
102.94p
Year ended 2024: 104.13p
* Alternative Performance Measure (“APM”), as defined by the European Securities and Markets Authority. Definitions of these performance measures,
and other terms used in this Report, are given on pages 87 and 88 together with supporting calculations where appropriate.
Performance Summary
for the year ended 30 June 2025
Section 1: Strategic Report
Net Asset Value (“NAV”)
per share total return *
1.6%
Year ended 2024: 1.5%
Share price
77.50p
Year ended 2024: 86.75p
Share price total return *
–7.4%
Year ended 2024: –4.8%
Share price discount to
NAV per share *
24.7%
Year ended 2024: 16.7%
Revenue return per share
4.15p
Year ended 2024: 3.16p
NAV per share *
102.94p
Year ended 2024: 104.13p
* Alternative Performance Measure (“APM”), as defined by the European Securities and Markets Authority. Definitions of these performance measures,
and other terms used in this Report, are given on pages 87 and 88 together with supporting calculations where appropriate.
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
6
Section 1: Strategic Report
Key Performance Indicators
As at 30 June 2025
In order to track the Company’s progress, the following key performance indicators
are monitored.
Financial
NAV total return per share 1
NAV per share re ects the value
attributable to our equity
shareholders including dividends paid.
Discussion of this can be found under the Performance
Summary and within the Strategic(Report between pages 5
to 37. 2023
2024
2025
Annualised
since inception
0.78%
1.46%
1.63%
2.53%
Share Price correlation 2,3 with
FTSE All Share
Share price correlation describes the
relationship between the respective
price movement of the Company’s
share(price and equity markets.
Discussion of this can be found within the
Portfolio(Manager’s Report between pages 12 to 21.
2023
2024
2025
Since
inception
(0.89)
(0.51)
(0.76)
(0.61)
1
The Company aims to provide a NAV total return of CPI plus 2% per annum (once the portfolio is fully invested and averaged over a rolling three-to ve-year period).
2
Share Price correlation with FTSE All Share is classi ed as an alternative performance measure. Correlation is calculated by obtaining the daily closing prices in each time
period for both the Company and FTSE All Share Index, sourced from Morningstar.
3
Low correlation to traditional equity markets tends to re ect a useful diversi er. Correlation of less than 0.5 indicates a low correlation to the quoted markets. Negative
correlation means the Company’s share price moves in the opposite direction to the FTSE All Share index.
6
Section 1: Strategic Report
Key Performance Indicators
As at 30 June 2025
In order to track the Company’s progress, the following key performance indicators
are monitored.
Financial
NAV total return per share 1
NAV per share re ects the value
attributable to our equity
shareholders including dividends paid.
Discussion of this can be found under the Performance
Summary and within the Strategic(Report between pages 5
to 37. 2023
2024
2025
Annualised
since inception
0.78%
1.46%
1.63%
2.53%
Share Price correlation 2,3 with
FTSE All Share
Share price correlation describes the
relationship between the respective
price movement of the Company’s
share(price and equity markets.
Discussion of this can be found within the
Portfolio(Manager’s Report between pages 12 to 21.
2023
2024
2025
Since
inception
(0.89)
(0.51)
(0.76)
(0.61)
1
The Company aims to provide a NAV total return of CPI plus 2% per annum (once the portfolio is fully invested and averaged over a rolling three-to ve-year period).
2
Share Price correlation with FTSE All Share is classi ed as an alternative performance measure. Correlation is calculated by obtaining the daily closing prices in each time
period for both the Company and FTSE All Share Index, sourced from Morningstar.
3
Low correlation to traditional equity markets tends to re ect a useful diversi er. Correlation of less than 0.5 indicates a low correlation to the quoted markets. Negative
correlation means the Company’s share price moves in the opposite direction to the FTSE All Share index.
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
7
Section 1: Strategic Report
Impact
Cumulative number of people benefitted
since Company launch
Measures the number of people directly
bene tting from the Company’s investees’
activities.
Discussion of this can be found within the Portfolio
Manager’s Report between pages 12 to 21 and the
2025(Impact Report. For further information on the
governance and assurance of impact data please refer to
the Impact Methodology Notes on page 89.
2023
2024
2025
400,000
422,000
276,000
Disadvantaged and vulnerable
people served 4
Measures the proportion of the above
who are from more disadvantaged and
vulnerable groups.
Discussion of this can be found within the Portfolio
Manager’s Report between pages 12 to 21 and the
2025(Impact Report. For further information on the
governance and assurance of impact data please refer to
the Impact Methodology Notes on page 89.
2023
2024
2025
94%
95%
98%
4
De nition of ‘Disadvantaged and vulnerable’ is given on pages 89 and 90.
Section 1: Strategic Report
Impact
Cumulative number of people benefitted
since Company launch
Measures the number of people directly
bene tting from the Company’s investees’
activities.
Discussion of this can be found within the Portfolio
Manager’s Report between pages 12 to 21 and the
2025(Impact Report. For further information on the
governance and assurance of impact data please refer to
the Impact Methodology Notes on page 89.
2023
2024
2025
400,000
422,000
276,000
Disadvantaged and vulnerable
people served 4
Measures the proportion of the above
who are from more disadvantaged and
vulnerable groups.
Discussion of this can be found within the Portfolio
Manager’s Report between pages 12 to 21 and the
2025(Impact Report. For further information on the
governance and assurance of impact data please refer to
the Impact Methodology Notes on page 89.
2023
2024
2025
94%
95%
98%
4
De nition of ‘Disadvantaged and vulnerable’ is given on pages 89 and 90.
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
8
Section 1: Strategic Report
Theory of Change
Problem
Entrenched social issues
in the UK that require
major investment
The organisations that are
best positioned to address
these issues cannot
access enough of the
right investment
The Company identifies
critical social issues with
investable models, and
sources investments across
its three main asset classes
The Company aims to
attract more investors to
impact investment, making
it accessible to both retail
and institutional investors
The Company engages with
fund managers to improve
and support the delivery of
positive impact and
ESG/EDI2 practice
Activities
The Company engages
with investors of all types
to raise capital, and
engages in investment
activities that contribute
towards addressing the
impact themes
The Social Impact Trust’s Theory of Change sets out how
it seeks to help tackle an investment gap for entrenched
social issues in the UK. It does this by raising capital and
investing through fund managers and co-investments
to strengthen and grow impact-focused frontline
organisations with strong track records, leading
to better essential services at scale for underserved
and disadvantaged communities in the UK.
The Theory of Change is summarised in the impact
pathway opposite – for more details please refer to the
Company’s “Sustainability Impact Label – Pre-Contractual
Disclosures”, which is available on the Company’s
website at: www.schroders.com/sbsi.
Since inception in December 2020, the Social Impact
Trust has allocated £96m of capital to 196 high impact
frontline organisations (as at 31 December 2024). The
organisations that receive investments from the Social
Impact Trust have reached 422,000 people, of which
98% are underserved and disadvantaged. For more
information on the Company’s impact performance
please refer to the Company's 2025 Impact Report,
which is available at: https://schro.link/impactreport2025.
The Social Impact Trust has
identified four key impact
themes in the UK that
need addressing: Reducing
poverty and inequality;
Good health and wellbeing;
Education, training and
decent work: and Just
transition to net zero 1
1
More details of the problem statements per theme are included in the Impact Themes section in the 2025 Impact Report, which is available at:
https://schro.link/impactreport2025.
2
Environmental, Social and Governance (“ESG”) and Equity, Diversity and Inclusion (“EDI”).
8
Section 1: Strategic Report
Theory of Change
Problem
Entrenched social issues
in the UK that require
major investment
The organisations that are
best positioned to address
these issues cannot
access enough of the
right investment
The Company identifies
critical social issues with
investable models, and
sources investments across
its three main asset classes
The Company aims to
attract more investors to
impact investment, making
it accessible to both retail
and institutional investors
The Company engages with
fund managers to improve
and support the delivery of
positive impact and
ESG/EDI2 practice
Activities
The Company engages
with investors of all types
to raise capital, and
engages in investment
activities that contribute
towards addressing the
impact themes
The Social Impact Trust’s Theory of Change sets out how
it seeks to help tackle an investment gap for entrenched
social issues in the UK. It does this by raising capital and
investing through fund managers and co-investments
to strengthen and grow impact-focused frontline
organisations with strong track records, leading
to better essential services at scale for underserved
and disadvantaged communities in the UK.
The Theory of Change is summarised in the impact
pathway opposite – for more details please refer to the
Company’s “Sustainability Impact Label – Pre-Contractual
Disclosures”, which is available on the Company’s
website at: www.schroders.com/sbsi.
Since inception in December 2020, the Social Impact
Trust has allocated £96m of capital to 196 high impact
frontline organisations (as at 31 December 2024). The
organisations that receive investments from the Social
Impact Trust have reached 422,000 people, of which
98% are underserved and disadvantaged. For more
information on the Company’s impact performance
please refer to the Company's 2025 Impact Report,
which is available at: https://schro.link/impactreport2025.
The Social Impact Trust has
identified four key impact
themes in the UK that
need addressing: Reducing
poverty and inequality;
Good health and wellbeing;
Education, training and
decent work: and Just
transition to net zero 1
1
More details of the problem statements per theme are included in the Impact Themes section in the 2025 Impact Report, which is available at:
https://schro.link/impactreport2025.
2
Environmental, Social and Governance (“ESG”) and Equity, Diversity and Inclusion (“EDI”).
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
9
Section 1: Strategic Report
More capital (Social Impact
Trust and co-investors)
flows to high impact
organisations that supports
them to scale
High impact organisations
draw on deep local
knowledge, networks
and long track records of
operation to deliver impact
Fund managers in the
Social Impact Trust
provide effective support
to investees
The Social Impact Trust
portfolio delivers robust
financial performance
by investing in business
models where impact
is intrinsically linked to
financial performance
Outputs
More capital is deployed
through impact funds
and co-investments
Social Impact Trust capital
is deployed into impact
funds that grow in scale
Outcomes
Social impact organisations
grow stronger and more
resilient
Impact
Better solutions delivered
at scale for underserved
and disadvantaged people
across the UK
Improved health services
Enhanced educational
prospects for
disadvantaged individuals
and wider market engagement with social impact investment
Increased access to
affordable housing
Local communities
benefiting from the just
transition to net zero
Fund managers’
improved impact practice
increases the likelihood
of achievement of
impact outcomes
Section 1: Strategic Report
More capital (Social Impact
Trust and co-investors)
flows to high impact
organisations that supports
them to scale
High impact organisations
draw on deep local
knowledge, networks
and long track records of
operation to deliver impact
Fund managers in the
Social Impact Trust
provide effective support
to investees
The Social Impact Trust
portfolio delivers robust
financial performance
by investing in business
models where impact
is intrinsically linked to
financial performance
Outputs
More capital is deployed
through impact funds
and co-investments
Social Impact Trust capital
is deployed into impact
funds that grow in scale
Outcomes
Social impact organisations
grow stronger and more
resilient
Impact
Better solutions delivered
at scale for underserved
and disadvantaged people
across the UK
Improved health services
Enhanced educational
prospects for
disadvantaged individuals
and wider market engagement with social impact investment
Increased access to
affordable housing
Local communities
benefiting from the just
transition to net zero
Fund managers’
improved impact practice
increases the likelihood
of achievement of
impact outcomes
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
10
Section 1: Strategic Report
Chair’s Statement
The Social Impact Trust delivered a 1.6%
NAV total return performance in the year
to 30 June 2025, with strong investment
income delivered from maturing
investments across the portfolio. The
Company will pay a dividend of 3.76p per
share (2024: 2.94p) on 19 December 2025,
which represents a dividend yield of 3.65%
based on the NAV at 30 June 2025 and
a(dividend yield of 5.45% based on the
Company’s share price as at close on
28(October 2025. This is above our guided
dividend range of 2-3% yield on NAV per
annum, due to a one-o income
distribution from Bridges Inclusive Growth
Fund. This dividend is wholly designated as
an interest distribution. As well as a
nancial return, the Company’s
investments continued to enable
substantial positive impact. The
organisations we have funded have
reached 422,000 people and generated
£238m in savings and additional income
for the Government, households, and
communities since inception.
Shareholder consultation and
strategic review
Over the year there has been continued
pressure on the Company’s share price,
with a share price total return during the
year of –7.4% and an average discount to
NAV of 24.7%. In response to this, and as
previously communicated, the Board’s
focus has been on managing the discount,
engaging with shareholders and exploring
potential options for the future of the
Company. Post year end in July 2025, the
Board announced our decision to conduct
a shareholder consultation process and
strategic review.
At the time, we announced that due to
di culties in expanding the shareholder
base and growing the assets of the
Company since IPO, the Board and its
advisers would carefully consider the
options for the future of the Company.
Since then, and as communicated on
4(September 2025, the Board has
engaged in a thorough consultation with
shareholders. Feedback included a variety
of preferred outcomes. As a result, the
Board is currently evaluating potential
fund structures and alternatives that
would seek to optimise outcomes for
shareholders and continues to consult
with them. An update will be provided at or
before the Company’s Annual General
Meeting (“AGM”) on 17 December 2025.
The Board is mindful about balancing
many factors in our deliberations,
including important liquidity requirements,
nancial and impact returns, and
shareholder feedback about the distinct
role the Company plays in investor
portfolios.
When the Company was launched in 2020,
it committed to providing shareholders
with the opportunity to vote on the
Company’s continuation should the
Company’s shares trade, on average, at
a(discount in excess of 10% to NAV for the
two-year period ending 31 December
2023 and in any subsequent two-year
period. The current period under
assessment is the two-year period to
31(December 2025. Given the average
discount of 22.8% from 1 January 2024 to
the date of this report, a vote will likely be
triggered. The Board intends to convene
a(general meeting prior to the AGM in
2026 to table recommended proposals on
the future of the Company.
I would like to take this opportunity to
sincerely thank our shareholders for their
valuable input and the ongoing support
for the goals of the Company and the work
of our investee organisations.
NAV total return growth with high
impact
The NAV total return for the year was 1.6%,
bringing NAV total return since inception
to 12.0% (2.5% annualised). NAV per share
as at 30 June 2025 was 102.94p, declining
from 104.13p at 30 June 2024 after the
payment of a 2.94p per share dividend.
The macro-economic picture has been
di cult, with real GDP growth for the year
remaining subdued at 1.2%, and the base
rate decreasing from 5.25% to 4.25% in
the year. In ation remained elevated with
CPI at 3.6% in the year to 30 June 2025.
Susannah Nicklin
Chair
10
Section 1: Strategic Report
Chair’s Statement
The Social Impact Trust delivered a 1.6%
NAV total return performance in the year
to 30 June 2025, with strong investment
income delivered from maturing
investments across the portfolio. The
Company will pay a dividend of 3.76p per
share (2024: 2.94p) on 19 December 2025,
which represents a dividend yield of 3.65%
based on the NAV at 30 June 2025 and
a(dividend yield of 5.45% based on the
Company’s share price as at close on
28(October 2025. This is above our guided
dividend range of 2-3% yield on NAV per
annum, due to a one-o income
distribution from Bridges Inclusive Growth
Fund. This dividend is wholly designated as
an interest distribution. As well as a
nancial return, the Company’s
investments continued to enable
substantial positive impact. The
organisations we have funded have
reached 422,000 people and generated
£238m in savings and additional income
for the Government, households, and
communities since inception.
Shareholder consultation and
strategic review
Over the year there has been continued
pressure on the Company’s share price,
with a share price total return during the
year of –7.4% and an average discount to
NAV of 24.7%. In response to this, and as
previously communicated, the Board’s
focus has been on managing the discount,
engaging with shareholders and exploring
potential options for the future of the
Company. Post year end in July 2025, the
Board announced our decision to conduct
a shareholder consultation process and
strategic review.
At the time, we announced that due to
di culties in expanding the shareholder
base and growing the assets of the
Company since IPO, the Board and its
advisers would carefully consider the
options for the future of the Company.
Since then, and as communicated on
4(September 2025, the Board has
engaged in a thorough consultation with
shareholders. Feedback included a variety
of preferred outcomes. As a result, the
Board is currently evaluating potential
fund structures and alternatives that
would seek to optimise outcomes for
shareholders and continues to consult
with them. An update will be provided at or
before the Company’s Annual General
Meeting (“AGM”) on 17 December 2025.
The Board is mindful about balancing
many factors in our deliberations,
including important liquidity requirements,
nancial and impact returns, and
shareholder feedback about the distinct
role the Company plays in investor
portfolios.
When the Company was launched in 2020,
it committed to providing shareholders
with the opportunity to vote on the
Company’s continuation should the
Company’s shares trade, on average, at
a(discount in excess of 10% to NAV for the
two-year period ending 31 December
2023 and in any subsequent two-year
period. The current period under
assessment is the two-year period to
31(December 2025. Given the average
discount of 22.8% from 1 January 2024 to
the date of this report, a vote will likely be
triggered. The Board intends to convene
a(general meeting prior to the AGM in
2026 to table recommended proposals on
the future of the Company.
I would like to take this opportunity to
sincerely thank our shareholders for their
valuable input and the ongoing support
for the goals of the Company and the work
of our investee organisations.
NAV total return growth with high
impact
The NAV total return for the year was 1.6%,
bringing NAV total return since inception
to 12.0% (2.5% annualised). NAV per share
as at 30 June 2025 was 102.94p, declining
from 104.13p at 30 June 2024 after the
payment of a 2.94p per share dividend.
The macro-economic picture has been
di cult, with real GDP growth for the year
remaining subdued at 1.2%, and the base
rate decreasing from 5.25% to 4.25% in
the year. In ation remained elevated with
CPI at 3.6% in the year to 30 June 2025.
Susannah Nicklin
Chair
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
11
Section 1: Strategic Report
Against this challenging backdrop, the
Company has not met our return target of
CPI +2% per annum (when fully invested
on a rolling three to ve year period).
Conditions in the UK investment trust
sector were also testing throughout the
year, as alternative investment strategies
like ours continued to trade on signi cant
discounts. In response to this ongoing
pressure, we saw many UK-listed
investment trusts enact corporate
initiatives or shifts in strategy, and the
Board has stayed well informed and alert
to market dynamics.
There were three capital realisations at
NAV completed in the year. These included
the partial repayment of one of the
Company’s charity bond investments,
a(second partial exit from the Resonance
Real Lettings Property Fund LP (“RLPF1”),
and the repayment of the Abbey eld York
loan in the Charity Bank co-investments
portfolio. The ability to continue to exit
investments at NAV demonstrates the
ongoing attractiveness and value of the
assets within our portfolio.
On 26 June 2025, the Company published
its 2025 Impact Report. This was the rst
Impact Report since the Company adopted
the FCA’s “Sustainability Impact” label in
December 2024. It makes inspiring
reading, with many positive impact
performance metrics evidencing how the
Company’s capital makes a signi cant
di erence to people’s lives. For example,
people provided with a ordable decent
homes since inception is up 5% on the
prior year to 34,500, while more than
42,000 underserved and disadvantaged
people have been provided with health
and care services. I encourage investors to
read the report, as we have included
powerful stories from people served by
our investees and a selection of frontline
investment case studies. The 2025 Impact
Report is available at:
https://schro.link/impactreport2025.
Outlook
While many macro-economic headwinds
persist, the Government continues to
show signs of an increasing interest in
social impact investment as a tool to help
nance key policy initiatives. This was
demonstrated this year with the creation
of the Social Impact Investment Advisory
Group in February 2025 and followed by
the announcement of the £500m Better
Futures Fund in July. The Better Futures
Fund is an innovative Social Outcomes
Contracts vehicle looking to support
vulnerable children and families in the UK.
Subject to our strategic review, the
Company may be well positioned to
engage with the new investment
opportunities unlocked by this fund and
other Government programmes.
The portfolio of the Company is a unique
o ering, bringing together multiple social
impact investment opportunities across
asset classes and issue areas in the UK.
It(continues to deliver deep positive impact
to disadvantaged communities across
the(UK. Preserving that impact remains
a(priority to the Board as we evaluate
options for the Company’s future and seek
to serve shareholders’ needs.
Although it has been a challenging period,
our Portfolio Manager has been a steady
hand on the tiller and maintained vigilant
focus on the Company’s dual impact and
nancial objectives. The Board is
committed to listening to investors and
thinking creatively along with our advisers.
I look forward to further engagement as
we explore all options to meet the diverse
goals of our shareholders, and will update
on our strategic direction at or before our
AGM in December 2025.
A recording of the Portfolio Manager
discussing the results is available at
https://schro.link/sbsi2025video.
Susannah Nicklin
Chair
28 October 2025
“Preserving that impact
remains a priority to the
Board as we evaluate
options for the
Company’s future and
seek to serve
shareholders’ needs.”
Section 1: Strategic Report
Against this challenging backdrop, the
Company has not met our return target of
CPI +2% per annum (when fully invested
on a rolling three to ve year period).
Conditions in the UK investment trust
sector were also testing throughout the
year, as alternative investment strategies
like ours continued to trade on signi cant
discounts. In response to this ongoing
pressure, we saw many UK-listed
investment trusts enact corporate
initiatives or shifts in strategy, and the
Board has stayed well informed and alert
to market dynamics.
There were three capital realisations at
NAV completed in the year. These included
the partial repayment of one of the
Company’s charity bond investments,
a(second partial exit from the Resonance
Real Lettings Property Fund LP (“RLPF1”),
and the repayment of the Abbey eld York
loan in the Charity Bank co-investments
portfolio. The ability to continue to exit
investments at NAV demonstrates the
ongoing attractiveness and value of the
assets within our portfolio.
On 26 June 2025, the Company published
its 2025 Impact Report. This was the rst
Impact Report since the Company adopted
the FCA’s “Sustainability Impact” label in
December 2024. It makes inspiring
reading, with many positive impact
performance metrics evidencing how the
Company’s capital makes a signi cant
di erence to people’s lives. For example,
people provided with a ordable decent
homes since inception is up 5% on the
prior year to 34,500, while more than
42,000 underserved and disadvantaged
people have been provided with health
and care services. I encourage investors to
read the report, as we have included
powerful stories from people served by
our investees and a selection of frontline
investment case studies. The 2025 Impact
Report is available at:
https://schro.link/impactreport2025.
Outlook
While many macro-economic headwinds
persist, the Government continues to
show signs of an increasing interest in
social impact investment as a tool to help
nance key policy initiatives. This was
demonstrated this year with the creation
of the Social Impact Investment Advisory
Group in February 2025 and followed by
the announcement of the £500m Better
Futures Fund in July. The Better Futures
Fund is an innovative Social Outcomes
Contracts vehicle looking to support
vulnerable children and families in the UK.
Subject to our strategic review, the
Company may be well positioned to
engage with the new investment
opportunities unlocked by this fund and
other Government programmes.
The portfolio of the Company is a unique
o ering, bringing together multiple social
impact investment opportunities across
asset classes and issue areas in the UK.
It(continues to deliver deep positive impact
to disadvantaged communities across
the(UK. Preserving that impact remains
a(priority to the Board as we evaluate
options for the Company’s future and seek
to serve shareholders’ needs.
Although it has been a challenging period,
our Portfolio Manager has been a steady
hand on the tiller and maintained vigilant
focus on the Company’s dual impact and
nancial objectives. The Board is
committed to listening to investors and
thinking creatively along with our advisers.
I look forward to further engagement as
we explore all options to meet the diverse
goals of our shareholders, and will update
on our strategic direction at or before our
AGM in December 2025.
A recording of the Portfolio Manager
discussing the results is available at
https://schro.link/sbsi2025video.
Susannah Nicklin
Chair
28 October 2025
“Preserving that impact
remains a priority to the
Board as we evaluate
options for the
Company’s future and
seek to serve
shareholders’ needs.”
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
12
Section 1: Strategic Report
Portfolio Manager’s Report
Market developments
The start of the Company’s nancial year
was marked by the election of a new
Labour Government, which brought
increased engagement with the social
economy, including several measures and
initiatives aimed at increasing the ow of
private and Government capital into
projects that address social issues and
regional inequalities.
The new Government expressed a
commitment to tackling the housing crisis,
a part of which is alleviating homelessness,
through building 1.5m new homes over
the next ve years
1
, addressing energy
security and fuel poverty through the
establishment of Great British Energy
2
, and
introduced the National Wealth Fund to
mobilise large-scale capital to support
national priorities, including regional and
local growth and clean energy 3
.
In July 2025 (after the Company’s nancial
year end), the Government announced
theJlaunch of the Better Futures Fund,
aJ£500m Social Outcomes Partnerships
Fund that aims to support up to 200,000
children and their families over the next
ten years, working in partnership with
social investors, philanthropists, social
enterprises, charities and local
communities
4
.
These priority areas are strongly aligned
with the Company’s investment themes,
and Better Society Capital has been
working closely with Government bodies
to help shape policy initiatives, for example
through our membership of the Social
Impact Investment Advisory Group whose
inputs and recommendations informed
the creation of the Better Futures Fund.
The broader economic indicators
remained challenging, with growth
remaining subdued at 1.2% 5
in the year to
June 2025, while in ation remained
elevated, at 3.6% in the same period,
against a backdrop of continued
geopolitical con ict, tensions and
uncertainty. Increasing gilt yields and
resulting increases in discount rates put
downward pressure on the valuation of
real assets, seen particularly in the
Company’s High Impact Housing portfolio.
Strategy Update and Outlook
As noted in the Chair’s Statement, the
Company’s discount to NAV continued to
widen, leading to the Board’s decision
toJannounce a strategy review and
shareholder consultation on 2 July 2025,
shortly after the end of the nancial year,
with a further update provided in early
September.
We are continuing to manage the portfolio
in accordance with the Company’s
investment objective and policy, however,
we will not be making any new
commitments that extend the maturity of
the portfolio, for the duration of the
consultation. As at the nancial year end,
total commitments to high impact
investments amounted to 98% of the NAV
of the portfolio, and 84% of NAV was
invested in high impact investments (with
the remainder being held in Liquidity
Assets to ful l undrawn commitments,
comprising 14% of NAV). As capital is being
repaid from maturing and exiting
investments, we will invest the proceeds in
money-market funds pending the
completion of the consultation process.
The Company’s portfolio continues to
deliver positive impact outcomes where
they are needed most, as shown in our
latest Impact Report, which shows that
since our launch in 2020, the
organisations funded by our investments
reached 422,000 people, 98% from
vulnerable and disadvantaged
backgrounds; generated £238m in social
outcomes and savings; and funded 34,500
a ordable and decent homes. The
adoption of the Sustainability Disclosure
Requirements (“SDR”) “Sustainability
Impact” label since December 2024
provides our investors assurance on the
rigour of our impact measurement,
management and reporting approach, and
our commitment to operate in line with
best industry standards.
We continue to see strong need for the
services our portfolio companies provide,
in an environment of persistent
constraints on public spending, and we
see growing momentum for catalysing
new investment opportunities in
partnership with a supportive
Government, committed to working with
private investment and the social sector.
Jeremy Rogers
Hermina Popa
1
https://www.gov.uk/government/news/planning-overhaul-to-reach-15-million-new-homes
2
https://www.gov.uk/government/publications/introducing-great-british-energy/great-british-energy-founding-statement
3
https://www.gov.uk/government/publications/statement-of-strategic-priorities-to-the-national-wealth-fund/statement-of-strategic-priorities-to-the-national-wealth-fund-html
4
https://www.gov.uk/government/news/largest-fund-of-its-kind-to-support-vulnerable-kids-families
5
https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/june2025#:~:text=1.,2.
12
Section 1: Strategic Report
Portfolio Manager’s Report
Market developments
The start of the Company’s nancial year
was marked by the election of a new
Labour Government, which brought
increased engagement with the social
economy, including several measures and
initiatives aimed at increasing the ow of
private and Government capital into
projects that address social issues and
regional inequalities.
The new Government expressed a
commitment to tackling the housing crisis,
a part of which is alleviating homelessness,
through building 1.5m new homes over
the next ve years
1
, addressing energy
security and fuel poverty through the
establishment of Great British Energy
2
, and
introduced the National Wealth Fund to
mobilise large-scale capital to support
national priorities, including regional and
local growth and clean energy 3
.
In July 2025 (after the Company’s nancial
year end), the Government announced
theJlaunch of the Better Futures Fund,
aJ£500m Social Outcomes Partnerships
Fund that aims to support up to 200,000
children and their families over the next
ten years, working in partnership with
social investors, philanthropists, social
enterprises, charities and local
communities
4
.
These priority areas are strongly aligned
with the Company’s investment themes,
and Better Society Capital has been
working closely with Government bodies
to help shape policy initiatives, for example
through our membership of the Social
Impact Investment Advisory Group whose
inputs and recommendations informed
the creation of the Better Futures Fund.
The broader economic indicators
remained challenging, with growth
remaining subdued at 1.2% 5
in the year to
June 2025, while in ation remained
elevated, at 3.6% in the same period,
against a backdrop of continued
geopolitical con ict, tensions and
uncertainty. Increasing gilt yields and
resulting increases in discount rates put
downward pressure on the valuation of
real assets, seen particularly in the
Company’s High Impact Housing portfolio.
Strategy Update and Outlook
As noted in the Chair’s Statement, the
Company’s discount to NAV continued to
widen, leading to the Board’s decision
toJannounce a strategy review and
shareholder consultation on 2 July 2025,
shortly after the end of the nancial year,
with a further update provided in early
September.
We are continuing to manage the portfolio
in accordance with the Company’s
investment objective and policy, however,
we will not be making any new
commitments that extend the maturity of
the portfolio, for the duration of the
consultation. As at the nancial year end,
total commitments to high impact
investments amounted to 98% of the NAV
of the portfolio, and 84% of NAV was
invested in high impact investments (with
the remainder being held in Liquidity
Assets to ful l undrawn commitments,
comprising 14% of NAV). As capital is being
repaid from maturing and exiting
investments, we will invest the proceeds in
money-market funds pending the
completion of the consultation process.
The Company’s portfolio continues to
deliver positive impact outcomes where
they are needed most, as shown in our
latest Impact Report, which shows that
since our launch in 2020, the
organisations funded by our investments
reached 422,000 people, 98% from
vulnerable and disadvantaged
backgrounds; generated £238m in social
outcomes and savings; and funded 34,500
a ordable and decent homes. The
adoption of the Sustainability Disclosure
Requirements (“SDR”) “Sustainability
Impact” label since December 2024
provides our investors assurance on the
rigour of our impact measurement,
management and reporting approach, and
our commitment to operate in line with
best industry standards.
We continue to see strong need for the
services our portfolio companies provide,
in an environment of persistent
constraints on public spending, and we
see growing momentum for catalysing
new investment opportunities in
partnership with a supportive
Government, committed to working with
private investment and the social sector.
Jeremy Rogers
Hermina Popa
1
https://www.gov.uk/government/news/planning-overhaul-to-reach-15-million-new-homes
2
https://www.gov.uk/government/publications/introducing-great-british-energy/great-british-energy-founding-statement
3
https://www.gov.uk/government/publications/statement-of-strategic-priorities-to-the-national-wealth-fund/statement-of-strategic-priorities-to-the-national-wealth-fund-html
4
https://www.gov.uk/government/news/largest-fund-of-its-kind-to-support-vulnerable-kids-families
5
https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/june2025#:~:text=1.,2.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
13
Section 1: Strategic Report
NAV per share progression
Performance update
The NAV total return per share for the year
to 30JJune 2025 was 1.63%. Overall, the
Company’s total NAV reduced from
£86.46m to £83.49m over the year due to
distributions to shareholders via the
dividend payment (£2.42m) and share
buy-backs (£1.47m: reducing the number
of shares in issue from 83.03m to 81.10m),
o set by the net return from investments
of £0.92m during the year under review.
The Company’s NAV per share declined
from 104.13p to 102.94p – including a
2.94p dividend payment – with a full
performance bridge in the chart above.
In the year to 30 June 2025 the Company
recorded gross revenue of £4.36m (2024:
£3.49m) and net revenue after fees, costs
and expenses of £3.40m (2024: £2.65m),
providing a net revenue return per share
of 4.15p (2024: 3.16p). The Company
recorded losses on the fair value of
investments of £2.17m and capitalised
expenses of £0.31m, resulting in a total
gross return of £2.19m, and total net
return of £0.92m, or 1.13p per share.
The Company will pay a dividend of 3.76p
per share (2024: 2.94p) on 19 December
2025, which represents a dividend yield of
3.65% based on the NAV at 30 June 2025
and a dividend yield of 5.45% based on the
Company’s share price as at close on
28JOctober 2025. This is above our guided
dividend range of 2-3% yield on NAV per
annum, due to a one-o income
distribution from Bridges Inclusive Growth
Fund. This dividend is wholly designated as
an interest distribution.
The key drivers of nancial performance in
the year to 30 June 2025 were:
• Strong income generation across the
asset classes, in particular Social
Outcomes Contracts, the Rathbones
Charity Bond Portfolio and a one-o
income distribution from Bridges
Inclusive Growth Fund from AgilityEco
exit proceeds.
• A negative restructuring adjustment
related to the Bridges Inclusive Growth
Fund arising from the fund’s conversion
from an evergreen structure, Bridges
Evergreen Holdings (“BEH”) to a
closed-ended vehicle.
• Valuation write-downs in the High
Impact Housing portfolio, driven by
market factors, primarily increases in
discount rates, and changes of
assumptions made by external valuers.
• By investment, the top positive
contributors to performance were the
Rathbones Charity Bond portfolio
(1.10p per share) and the Bridges Social
Outcome Fund II (0.69p per share), and
the largest detractor to performance
was the Man Community Housing Fund
(–0.57p per share).
Impact
In December 2024, the Company started
applying the SDR “Sustainability Impact”
label. Adopting the SDR label is an
example of the Company’s commitment to
operating in line with industry best
standards and to continuous
improvement. For example, through the
SDR label adoption process, we identi ed
the need to provide more transparency on
the Liquidity Assets allocation’s ESG
performance. This was outlined in the
Company’s latest Impact Report. For more
information, please see the consumer
facing and pre8contractual disclosures on
the Company’s website at
http://www.schroders.com/sbsi. For more
information on sustainability labels, please
visit the FCA website at
https://www.fca.org.uk/ rms/climate-
change-and-sustainable-
nance/sustainability-disclosure-and-labelli
ng-regime.
The social impact performance of the
portfolio was reported in the Company’s
fourth Impact Report (and the rst under
the new labelling regime) published in July
2025.
Portfolio exits
During the year, the Company agreed
aJsecond partial exit at NAV from RLPF1,
amounting to £1.8m and reducing the
Company’s stake in the fund from 7.5% to
5.1%. The realised return on this
investment was 6.0%, annualised since
Company investment at inception in
December 2020, in line with the fund
target return. InJaddition, the Company
received a repayment of the Abbey eld
York loan in the Charity Bank
co-investment portfolio, amounting to
£2.0m. The repayment was made in full,
and the realised return on this exit was
8.7%, annualised since Company
investment in October 2021, as the
interest on the loan was at a margin to the
BoE base rate.
The Bridges Social Outcomes Fund
returned £1.0m of capital during the year,
following successful achievement of
outcomes/completion of multiple projects
in the portfolio. These included notably
AllChild (a tailored programme of
mentoring and support for disadvantaged
young people), Forward (which supports
women who have experienced, or are at
risk of, removals of children from their
care) and Kirklees Better Outcomes
Partnerships (supporting people at risk of
homelessness). The investment period for
the fund ended in July 2025, but the fund
will continue to draw down capital for
agreed expansions and continuations of
existing contracts. The fund continues to
deliver returns above its target rate.
100.00
101.00
102.00
103.00
104.00
105.00
106.00
107.00
108.00
102.94
Closing NAV per share
0.61
Share buybacks
–2.94
Dividends paid
–0.86
Other expenses
–0.67
Company-level investment
management fees
5.32
Investment income
–2.65
Valuation losses
104.13
Opening NAV per share
Total
Section 1: Strategic Report
NAV per share progression
Performance update
The NAV total return per share for the year
to 30JJune 2025 was 1.63%. Overall, the
Company’s total NAV reduced from
£86.46m to £83.49m over the year due to
distributions to shareholders via the
dividend payment (£2.42m) and share
buy-backs (£1.47m: reducing the number
of shares in issue from 83.03m to 81.10m),
o set by the net return from investments
of £0.92m during the year under review.
The Company’s NAV per share declined
from 104.13p to 102.94p – including a
2.94p dividend payment – with a full
performance bridge in the chart above.
In the year to 30 June 2025 the Company
recorded gross revenue of £4.36m (2024:
£3.49m) and net revenue after fees, costs
and expenses of £3.40m (2024: £2.65m),
providing a net revenue return per share
of 4.15p (2024: 3.16p). The Company
recorded losses on the fair value of
investments of £2.17m and capitalised
expenses of £0.31m, resulting in a total
gross return of £2.19m, and total net
return of £0.92m, or 1.13p per share.
The Company will pay a dividend of 3.76p
per share (2024: 2.94p) on 19 December
2025, which represents a dividend yield of
3.65% based on the NAV at 30 June 2025
and a dividend yield of 5.45% based on the
Company’s share price as at close on
28JOctober 2025. This is above our guided
dividend range of 2-3% yield on NAV per
annum, due to a one-o income
distribution from Bridges Inclusive Growth
Fund. This dividend is wholly designated as
an interest distribution.
The key drivers of nancial performance in
the year to 30 June 2025 were:
• Strong income generation across the
asset classes, in particular Social
Outcomes Contracts, the Rathbones
Charity Bond Portfolio and a one-o
income distribution from Bridges
Inclusive Growth Fund from AgilityEco
exit proceeds.
• A negative restructuring adjustment
related to the Bridges Inclusive Growth
Fund arising from the fund’s conversion
from an evergreen structure, Bridges
Evergreen Holdings (“BEH”) to a
closed-ended vehicle.
• Valuation write-downs in the High
Impact Housing portfolio, driven by
market factors, primarily increases in
discount rates, and changes of
assumptions made by external valuers.
• By investment, the top positive
contributors to performance were the
Rathbones Charity Bond portfolio
(1.10p per share) and the Bridges Social
Outcome Fund II (0.69p per share), and
the largest detractor to performance
was the Man Community Housing Fund
(–0.57p per share).
Impact
In December 2024, the Company started
applying the SDR “Sustainability Impact”
label. Adopting the SDR label is an
example of the Company’s commitment to
operating in line with industry best
standards and to continuous
improvement. For example, through the
SDR label adoption process, we identi ed
the need to provide more transparency on
the Liquidity Assets allocation’s ESG
performance. This was outlined in the
Company’s latest Impact Report. For more
information, please see the consumer
facing and pre8contractual disclosures on
the Company’s website at
http://www.schroders.com/sbsi. For more
information on sustainability labels, please
visit the FCA website at
https://www.fca.org.uk/ rms/climate-
change-and-sustainable-
nance/sustainability-disclosure-and-labelli
ng-regime.
The social impact performance of the
portfolio was reported in the Company’s
fourth Impact Report (and the rst under
the new labelling regime) published in July
2025.
Portfolio exits
During the year, the Company agreed
aJsecond partial exit at NAV from RLPF1,
amounting to £1.8m and reducing the
Company’s stake in the fund from 7.5% to
5.1%. The realised return on this
investment was 6.0%, annualised since
Company investment at inception in
December 2020, in line with the fund
target return. InJaddition, the Company
received a repayment of the Abbey eld
York loan in the Charity Bank
co-investment portfolio, amounting to
£2.0m. The repayment was made in full,
and the realised return on this exit was
8.7%, annualised since Company
investment in October 2021, as the
interest on the loan was at a margin to the
BoE base rate.
The Bridges Social Outcomes Fund
returned £1.0m of capital during the year,
following successful achievement of
outcomes/completion of multiple projects
in the portfolio. These included notably
AllChild (a tailored programme of
mentoring and support for disadvantaged
young people), Forward (which supports
women who have experienced, or are at
risk of, removals of children from their
care) and Kirklees Better Outcomes
Partnerships (supporting people at risk of
homelessness). The investment period for
the fund ended in July 2025, but the fund
will continue to draw down capital for
agreed expansions and continuations of
existing contracts. The fund continues to
deliver returns above its target rate.
100.00
101.00
102.00
103.00
104.00
105.00
106.00
107.00
108.00
102.94
Closing NAV per share
0.61
Share buybacks
–2.94
Dividends paid
–0.86
Other expenses
–0.67
Company-level investment
management fees
5.32
Investment income
–2.65
Valuation losses
104.13
Opening NAV per share
Total
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
14
Section 1: Strategic Report
Portfolio cash ows and balance
sheet
During the year, net distributions from
High Impact Investments were £5.6m,
comprising new deployment of capital of
£6.1m, and capital repayments of £11.7m
(£6.1m of which are recallable
distributions):
• In Debt and Equity for Social
Enterprises:
– BEH was restructured at the start
ofJthe year, transitioning to aJclosed-
ended fund, and re-launched as
Bridges Inclusive Growth Fund. As
part of the change in structure, the
fund returned £6.0m of capital from
the AgilityEco exit proceeds to the
Company, recallable to the fund for
new investments into high-impact
opportunities.
– In the Charity Bank Co-investment
portfolio, we received a full capital
repayment of £2.0m for the
Abbey eld York loan.
– Thera Trust repaid 10% of the
amount outstanding of its charity
bond (£172k).
• In High Impact Housing:
– £3.8m was drawn by Simply
A ordable Homes (“SAH”), managed
by Savills Investment Management,
a new commitment by the Company
in March 2024. SAH aims to deliver
a ordable homes across the UK,
with a focus on areas with high local
authority waiting lists and areas
ranked within the lowest parts of the
Index of Multiple Deprivation. This
drawdown was to acquire three
portfolios of a ordable housing
across England, comprising
193Jhomes in SAH’s seed portfolio,
143 homes in Heyford Park, and
105Jhomes near Blenheim, both of
which are in Oxfordshire.
– £1.2m was drawn by Man
Community Housing Fund, deployed
towards delivering more a ordable
and social housing in the UK.
– £1.8m of capital was returned by
RLPF1 to the Company following a
second partial exit at NAV.
• Within Social Outcomes Contracts,
£1.0m of capital was returned following
successful project completion, and
£0.27m of capital was drawn for further
investment into new and existing
projects for the delivery of public
services in areas such as homelessness
and healthcare.
Portfolio Allocation
The Company’s investment objective is to
deliver measurable positive social impact
as well as long term capital growth and
income, through investing in a diversi ed
portfolio of Impact Funds, Managed
Accounts, Co-Investments and Direct
Investments, in each case so as to gain
exposure to Social Impact Investments.
“Social Impact Investments” are
investments intended to have a positive
social impact on people predominantly in
the UK while providing a nancial return to
investors, including, but not limited to,
High Impact Housing, Debt and Equity for
Social Enterprises and Social Outcomes
Contracts. Investments will be selected for
their ability to contribute towards the
reduction of poverty and inequality as well
as addressing other critical social
challenges in the UK. The Company aims
to provide a Net Asset Value total return of
CPI plus 2% per annum (once the portfolio
is fully invested and averaged over a
rolling three- to ve- year period, net of
fees) with low correlation to traditional
quoted while making a signi cant
contribution to addressing social issues in
the UK.
A diversi ed asset allocation
delivering local UK social impact
The Company delivers its investment
objective through allocating to
best-in-class social impact managers in
private markets – with proven track
records delivering high quality nancial
returns alongside measurable social
impact for more disadvantaged groups in
the UK. Investments that are committed
but not yet drawn by private market funds
are held in Liquidity Assets investments to
mitigate cash drag during longer
drawdown periods.
As at 30 June 2025, total commitments
(drawn and undrawn) to High Impact
Investments amounted to 98% of NAV,
while the drawn portion of the
commitments was at 84% of NAV (invested
as % of NAV). Capital awaiting deployment
into High Impact Investments is currently
held in Liquidity Assets (including money
market funds earning interest broadly in
line with base rates) (17% of NAV).
Undrawn commitments currently comprise
14% of NAV.
Note: Please see asset class description on page 16.
Exposure: NAV of High Impact Investments + undrawn commitments. Totals may not sum due to rounding.
Data as at 30 June 2025
Source: Better Society Capital
Providing access to a seasoned
high impact portfolio
The Company has built a seasoned high
impact portfolio that would be diCcult for
shareholders to access directly – through
aJcombination of a seed portfolio and
secondary investments from Better Society
Capital, the Portfolio Manager, as well as its
relationships and knowledge of the sector.
This provides a greater allocation to more
mature assets that will help drive future
nancial and impact performance. The
Portfolio Manager’s broader portfolio
relationships o er additional fee bene ts
to Company shareholders – with 51% of
the Company’s portfolio with no or
discounted management fees – from
co-investments or fee discounts that the
Portfolio Manager has negotiated, often
through their role as initial cornerstone
investor in funds.
Cash and cash equivale
Liquidity Assets
Social Oucomes Contra
Debt and Equity for Soc
High Impact Housing
43%
38%
17%
2%
Invested
as a % of
NAV
High Impact Housing
Debt and Equity for Social
Enterprises
Social Outcomes Contracts
Liquidity Assets
Social Oucomes Contracts
Debt and Equity for Social Enterprises
High Impact Housing
45%
46%
7%
H igh I mpact
Ex posure as
a % of NAV
High Impact Housing
Debt and Equity for Social
Enterprises
Social Outcomes Contracts
14
Section 1: Strategic Report
Portfolio cash ows and balance
sheet
During the year, net distributions from
High Impact Investments were £5.6m,
comprising new deployment of capital of
£6.1m, and capital repayments of £11.7m
(£6.1m of which are recallable
distributions):
• In Debt and Equity for Social
Enterprises:
– BEH was restructured at the start
ofJthe year, transitioning to aJclosed-
ended fund, and re-launched as
Bridges Inclusive Growth Fund. As
part of the change in structure, the
fund returned £6.0m of capital from
the AgilityEco exit proceeds to the
Company, recallable to the fund for
new investments into high-impact
opportunities.
– In the Charity Bank Co-investment
portfolio, we received a full capital
repayment of £2.0m for the
Abbey eld York loan.
– Thera Trust repaid 10% of the
amount outstanding of its charity
bond (£172k).
• In High Impact Housing:
– £3.8m was drawn by Simply
A ordable Homes (“SAH”), managed
by Savills Investment Management,
a new commitment by the Company
in March 2024. SAH aims to deliver
a ordable homes across the UK,
with a focus on areas with high local
authority waiting lists and areas
ranked within the lowest parts of the
Index of Multiple Deprivation. This
drawdown was to acquire three
portfolios of a ordable housing
across England, comprising
193Jhomes in SAH’s seed portfolio,
143 homes in Heyford Park, and
105Jhomes near Blenheim, both of
which are in Oxfordshire.
– £1.2m was drawn by Man
Community Housing Fund, deployed
towards delivering more a ordable
and social housing in the UK.
– £1.8m of capital was returned by
RLPF1 to the Company following a
second partial exit at NAV.
• Within Social Outcomes Contracts,
£1.0m of capital was returned following
successful project completion, and
£0.27m of capital was drawn for further
investment into new and existing
projects for the delivery of public
services in areas such as homelessness
and healthcare.
Portfolio Allocation
The Company’s investment objective is to
deliver measurable positive social impact
as well as long term capital growth and
income, through investing in a diversi ed
portfolio of Impact Funds, Managed
Accounts, Co-Investments and Direct
Investments, in each case so as to gain
exposure to Social Impact Investments.
“Social Impact Investments” are
investments intended to have a positive
social impact on people predominantly in
the UK while providing a nancial return to
investors, including, but not limited to,
High Impact Housing, Debt and Equity for
Social Enterprises and Social Outcomes
Contracts. Investments will be selected for
their ability to contribute towards the
reduction of poverty and inequality as well
as addressing other critical social
challenges in the UK. The Company aims
to provide a Net Asset Value total return of
CPI plus 2% per annum (once the portfolio
is fully invested and averaged over a
rolling three- to ve- year period, net of
fees) with low correlation to traditional
quoted while making a signi cant
contribution to addressing social issues in
the UK.
A diversi ed asset allocation
delivering local UK social impact
The Company delivers its investment
objective through allocating to
best-in-class social impact managers in
private markets – with proven track
records delivering high quality nancial
returns alongside measurable social
impact for more disadvantaged groups in
the UK. Investments that are committed
but not yet drawn by private market funds
are held in Liquidity Assets investments to
mitigate cash drag during longer
drawdown periods.
As at 30 June 2025, total commitments
(drawn and undrawn) to High Impact
Investments amounted to 98% of NAV,
while the drawn portion of the
commitments was at 84% of NAV (invested
as % of NAV). Capital awaiting deployment
into High Impact Investments is currently
held in Liquidity Assets (including money
market funds earning interest broadly in
line with base rates) (17% of NAV).
Undrawn commitments currently comprise
14% of NAV.
Note: Please see asset class description on page 16.
Exposure: NAV of High Impact Investments + undrawn commitments. Totals may not sum due to rounding.
Data as at 30 June 2025
Source: Better Society Capital
Providing access to a seasoned
high impact portfolio
The Company has built a seasoned high
impact portfolio that would be diCcult for
shareholders to access directly – through
aJcombination of a seed portfolio and
secondary investments from Better Society
Capital, the Portfolio Manager, as well as its
relationships and knowledge of the sector.
This provides a greater allocation to more
mature assets that will help drive future
nancial and impact performance. The
Portfolio Manager’s broader portfolio
relationships o er additional fee bene ts
to Company shareholders – with 51% of
the Company’s portfolio with no or
discounted management fees – from
co-investments or fee discounts that the
Portfolio Manager has negotiated, often
through their role as initial cornerstone
investor in funds.
Cash and cash equivale
Liquidity Assets
Social Oucomes Contra
Debt and Equity for Soc
High Impact Housing
43%
38%
17%
2%
Invested
as a % of
NAV
High Impact Housing
Debt and Equity for Social
Enterprises
Social Outcomes Contracts
Liquidity Assets
Social Oucomes Contracts
Debt and Equity for Social Enterprises
High Impact Housing
45%
46%
7%
H igh I mpact
Ex posure as
a % of NAV
High Impact Housing
Debt and Equity for Social
Enterprises
Social Outcomes Contracts
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
15
Section 1: Strategic Report
High Impact Exposure as a % of
NAV 30 June 2025
6
Vintage
Vintage is de ned as year of fund
establishment:
Access (ease of access for other
investors) – High Impact Exposure
as % of NAV 30 June 2025
6
Fees
Data as at 30 June 2025.
Source: Better Society Capital
Targeting in ation resilient
returns
The Company aims to deliver an asset
allocation that is resilient through periods
of rising prices through targeting
two-thirds of its asset allocation to assets
that will bene t from in ation. These
assets are:
• Property and renewables – with a mix
of long-dated in ation-linked leases,
shorter property leases where value is
more driven by property prices, and
smaller investments in community
renewables in our Debt and Equity for
Social Enterprises asset class. We also
hold renewables investments in our
Liquidity Assets portfolio.
• Equity investments – where the value is
correlated with in ation, including
through the use of Government
contracts that have historically moved
with in ation.
• Floating rate instruments which bene t
from increases in the base rate
(currently base rates are higher than
in ation, and are expected to
decrease).
As at 30 June 2025, the Company had
committed 60% of its capital 7
to in ation
sensitive assets. The remaining capital
committed to High Impact Investments
was allocated to xed income securities
such as charity bonds and Social
Outcomes Contracts. The Company aims
to minimise the duration of these xed
income assets, to allow reinvestment over
time into the prevailing interest rate
environment. Including the investments in
Liquidity Assets, the Company’s invested
amount in assets that are linked or
correlated with in ation is 67% of its
capital.
Asset Types
To date the Company has underperformed
its CPI+2% aim, with double digit in ation
levels not being re ected in portfolio
returns. The principal reasons for this have
been regulatory lease caps for social
housing, increases in discount rates, falls
in real value of house prices and lags in
in ation feeding through into new
contracts. We expect to see future returns
now bene ting as the lagged impact of
higher in ation and rates feed across the
portfolio, alongside the unwinding of
higher discount rates now embedded in
portfolio valuations.
Targeting low correlation to
mainstream markets
The Company’s asset allocation aims to
achieve low correlation to mainstream
markets by backing business models that
are underpinned by Government
expenditure and have been historically
resilient through economic cycles. As at
30JJune 2025, 69% of the committed
portfolio (57% invested) is underpinned by
Government-backed revenue streams.
These revenue streams are themselves
diversi ed across policy areas, such as
housing, clean energy and fuel poverty,
education, and redressing inequalities/
levelling up. This diversi cation reduces
exposure to individual policy risk, such as
the risk that Government or budgetary
changes would signi cantly reduce or
withdraw payments. The Company targets
areas with a track record of delivering
impact for more disadvantaged groups and
generating savings for the public purse
which provides additional revenue
resilience. InJthe year to 30 June 2025, the
Company’s share price had a negative
correlation with the FTSE All Share Index of
–0.51 and since Company IPO, the share
price had a negative correlation of –0.89
with the market index.
Recently and in the nancial year, it has
been noted that while the underlying
portfolio of assets may be uncorrelated
with mainstream markets, due to the listed
nature of the Company, it remains
exposed to other market sentiment
challenges, in particular to the negative
perception of investment trusts investing
in alternatives. This has driven continued
pressure on the share price.
In a challenging period for nancial
markets since the IPO in December 2020
the Company’s portfolio performance has
shown resilience, delivering a NAV Total
Return per share of 11.98% (2.53%
annualised), outperforming the ARC
Cautious Index, which delivered a total
return of 5.00% (1.08% annualised) over
the same period.
Hermina Popa, Jeremy Rogers
Better Society Capital
28 October 2025
Cash and cash equivalents
Fixed income and SOCs
Floating rate
Mezzanine
Housing & renewables
2% 6%
47%
33%
12%
Housing & renewables
Mezzanine
Floating rate
Fixed income and Social Outcomes
Contracts
Cash
Market rate fees
No managers fees or discounted
51%
49%
No manager fees or
discounted
Market rate fees
Uncommitted
2020-2022
2017-2019
2013-2016
29%
43%
26%
2013-2016 2017-2019
2020-2025
Charity Bonds
Private funds with irregular fundraisers
Private funds closed to new investors
Co-Investments/Secondaries
46%
22%
12%
17%
Co-investments/Secondaries
Private funds closed to new
investors
Private funds with irregular
fundraises
Charity Bonds
6
High Impact Exposure as a % of NAV is calculated as follows: The denominator is NAV of the Trust. The
numerator is the current value of the High Impact Portfolio plus undrawn commitments. Totals may not sum
due to rounding.
7
Capital committed is de ned as NAV of the High Impact Portfolio + undrawn commitments.
Section 1: Strategic Report
High Impact Exposure as a % of
NAV 30 June 2025
6
Vintage
Vintage is de ned as year of fund
establishment:
Access (ease of access for other
investors) – High Impact Exposure
as % of NAV 30 June 2025
6
Fees
Data as at 30 June 2025.
Source: Better Society Capital
Targeting in ation resilient
returns
The Company aims to deliver an asset
allocation that is resilient through periods
of rising prices through targeting
two-thirds of its asset allocation to assets
that will bene t from in ation. These
assets are:
• Property and renewables – with a mix
of long-dated in ation-linked leases,
shorter property leases where value is
more driven by property prices, and
smaller investments in community
renewables in our Debt and Equity for
Social Enterprises asset class. We also
hold renewables investments in our
Liquidity Assets portfolio.
• Equity investments – where the value is
correlated with in ation, including
through the use of Government
contracts that have historically moved
with in ation.
• Floating rate instruments which bene t
from increases in the base rate
(currently base rates are higher than
in ation, and are expected to
decrease).
As at 30 June 2025, the Company had
committed 60% of its capital 7
to in ation
sensitive assets. The remaining capital
committed to High Impact Investments
was allocated to xed income securities
such as charity bonds and Social
Outcomes Contracts. The Company aims
to minimise the duration of these xed
income assets, to allow reinvestment over
time into the prevailing interest rate
environment. Including the investments in
Liquidity Assets, the Company’s invested
amount in assets that are linked or
correlated with in ation is 67% of its
capital.
Asset Types
To date the Company has underperformed
its CPI+2% aim, with double digit in ation
levels not being re ected in portfolio
returns. The principal reasons for this have
been regulatory lease caps for social
housing, increases in discount rates, falls
in real value of house prices and lags in
in ation feeding through into new
contracts. We expect to see future returns
now bene ting as the lagged impact of
higher in ation and rates feed across the
portfolio, alongside the unwinding of
higher discount rates now embedded in
portfolio valuations.
Targeting low correlation to
mainstream markets
The Company’s asset allocation aims to
achieve low correlation to mainstream
markets by backing business models that
are underpinned by Government
expenditure and have been historically
resilient through economic cycles. As at
30JJune 2025, 69% of the committed
portfolio (57% invested) is underpinned by
Government-backed revenue streams.
These revenue streams are themselves
diversi ed across policy areas, such as
housing, clean energy and fuel poverty,
education, and redressing inequalities/
levelling up. This diversi cation reduces
exposure to individual policy risk, such as
the risk that Government or budgetary
changes would signi cantly reduce or
withdraw payments. The Company targets
areas with a track record of delivering
impact for more disadvantaged groups and
generating savings for the public purse
which provides additional revenue
resilience. InJthe year to 30 June 2025, the
Company’s share price had a negative
correlation with the FTSE All Share Index of
–0.51 and since Company IPO, the share
price had a negative correlation of –0.89
with the market index.
Recently and in the nancial year, it has
been noted that while the underlying
portfolio of assets may be uncorrelated
with mainstream markets, due to the listed
nature of the Company, it remains
exposed to other market sentiment
challenges, in particular to the negative
perception of investment trusts investing
in alternatives. This has driven continued
pressure on the share price.
In a challenging period for nancial
markets since the IPO in December 2020
the Company’s portfolio performance has
shown resilience, delivering a NAV Total
Return per share of 11.98% (2.53%
annualised), outperforming the ARC
Cautious Index, which delivered a total
return of 5.00% (1.08% annualised) over
the same period.
Hermina Popa, Jeremy Rogers
Better Society Capital
28 October 2025
Cash and cash equivalents
Fixed income and SOCs
Floating rate
Mezzanine
Housing & renewables
2% 6%
47%
33%
12%
Housing & renewables
Mezzanine
Floating rate
Fixed income and Social Outcomes
Contracts
Cash
Market rate fees
No managers fees or discounted
51%
49%
No manager fees or
discounted
Market rate fees
Uncommitted
2020-2022
2017-2019
2013-2016
29%
43%
26%
2013-2016 2017-2019
2020-2025
Charity Bonds
Private funds with irregular fundraisers
Private funds closed to new investors
Co-Investments/Secondaries
46%
22%
12%
17%
Co-investments/Secondaries
Private funds closed to new
investors
Private funds with irregular
fundraises
Charity Bonds
6
High Impact Exposure as a % of NAV is calculated as follows: The denominator is NAV of the Trust. The
numerator is the current value of the High Impact Portfolio plus undrawn commitments. Totals may not sum
due to rounding.
7
Capital committed is de ned as NAV of the High Impact Portfolio + undrawn commitments.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
16
Section 1: Strategic Report
Portfolio developments
The Company invests primarily in three asset classes that were selected to give a diversi ed set of opportunities with low correlation,
both with one another and with mainstream nancial developments across all three in the year under review.
Debt and Equity for Social
Enterprises
Lending to, and some preference shares in, typically large and
well-established charities and social enterprises to help fund
expansion projects to scale operations and impact including:
– Health and Social Care
– Community Facilities and Services
– Fuel Poverty
High Impact Housing
Investment to increase the number of safe, secure and genuinely
a ordable homes for more disadvantaged groups, diversi ed
across:
– Transitional Supported Housing
– General Needs Social and A ordable Housing
– Specialist Supported Housing
Social Outcomes Contracts
Outcomes Contracts, where private capital enables a consortium
of expert charities and social enterprises to deliver outcomes for
Government-commissioned contracts across:
– Family Therapy and Children’s Services
– Homelessness
– Adult Health and Social Care
16
Section 1: Strategic Report
Portfolio developments
The Company invests primarily in three asset classes that were selected to give a diversi ed set of opportunities with low correlation,
both with one another and with mainstream nancial developments across all three in the year under review.
Debt and Equity for Social
Enterprises
Lending to, and some preference shares in, typically large and
well-established charities and social enterprises to help fund
expansion projects to scale operations and impact including:
– Health and Social Care
– Community Facilities and Services
– Fuel Poverty
High Impact Housing
Investment to increase the number of safe, secure and genuinely
a ordable homes for more disadvantaged groups, diversi ed
across:
– Transitional Supported Housing
– General Needs Social and A ordable Housing
– Specialist Supported Housing
Social Outcomes Contracts
Outcomes Contracts, where private capital enables a consortium
of expert charities and social enterprises to deliver outcomes for
Government-commissioned contracts across:
– Family Therapy and Children’s Services
– Homelessness
– Adult Health and Social Care
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
17
Section 1: Strategic Report
High Impact Portfolio
Contribution to
the Company’s
Date of Value at Undrawn total return for the
Company 30 June 2025 Value as commitment nancial year TVPI 3
DPI
3
Value
High Impact Portfolio Vintage investment (£)
2
% of NAV (£) (pps) IRR
3,4
Charity Bond Portfolio 2013-2022 2020 14,542,719 17% 0 1.10 1.16 0.34
Community Investment Fund 2014 2022 5,062,238 6% 492,731 0.21 1.27 0.33
Bridges Inclusive Growth Fund 2016 2020 5,068,455 6% 5,436,133 (0.37) 1.19 0.73
Charity Bank Co-Investment Portfolio 2019-2022 2020 1,608,410 2% 0 0.28 1.16 0.93 5.0%
Community Together Energy Limited 2023 2023 3,344,956 4% 0 0.36 1.13 0.20
Triodos Bank UK Bond Issue 2020 2020 2,516,712 3% 0 0.12 1.18 0.17
Total 1
32,143,491 38% 5,928,864 1.70 1.18 0.50
UK A ordable Housing Fund 2018 2020 10,366,038 12% 0 0.28 1.11 0.06
Social and Sustainable Housing 2019 2020 9,520,976 11% 0 0.53 1.09 0.08
Man GPM RI Community Housing Fund 2021 2021 8,858,005 11% 834,980 (0.57) 0.97 0.01
Resonance Real Lettings Property Fund 2013 2020 3,567,060 4% 0 (0.32) 1.21 0.60 2.5%
Simply A ordable Homes 2024 2024 3,654,028 4% 1,225,068 (0.16) 0.97 0.00
Total 1
35,966,106 43% 2,060,047 (0.24) 1.07 0.13
Bridges Social Outcomes Fund 2018 2020 1,672,439 2% 3,835,797 0.69 1.37 1.01 Outperforming
Total 1
1,672,439 2% 3,835,797 0.69 1.37 1.01 target 5
Total 1
69,782,035 84% 11,824,708 2.15 1.14 0.37 4.3%
1
Totals may not sum due to rounding.
2
Value including accrued interest where applicable.
3
TVPI/DPI since Company investment. See below for calculation methodologies used.
Calculation methodologies for TVPI, DPI & IRR:
TVPI (Total Value to Paid in) – (Value at year-end + distributions to date)/Total paid into investment to date
DPI (Distribution to Paid in) – (Distributions to date)/Total paid into investment to date
VIRR (Value IRR) – Internal rate of return, using value at period/year end to be the terminal value and assumed realisation date
4
Since Company IPO.
5
Outperformed fund target, due to the Company investing at a more mature stage of the fund, as Bridges SOF II was part of the seed portfolio at the
Company’s IPO.
Debt & Equity
for Social
Enterprises
High impact
Housing
Social
Outcomes
Contracts
Section 1: Strategic Report
High Impact Portfolio
Contribution to
the Company’s
Date of Value at Undrawn total return for the
Company 30 June 2025 Value as commitment nancial year TVPI 3
DPI
3
Value
High Impact Portfolio Vintage investment (£)
2
% of NAV (£) (pps) IRR
3,4
Charity Bond Portfolio 2013-2022 2020 14,542,719 17% 0 1.10 1.16 0.34
Community Investment Fund 2014 2022 5,062,238 6% 492,731 0.21 1.27 0.33
Bridges Inclusive Growth Fund 2016 2020 5,068,455 6% 5,436,133 (0.37) 1.19 0.73
Charity Bank Co-Investment Portfolio 2019-2022 2020 1,608,410 2% 0 0.28 1.16 0.93 5.0%
Community Together Energy Limited 2023 2023 3,344,956 4% 0 0.36 1.13 0.20
Triodos Bank UK Bond Issue 2020 2020 2,516,712 3% 0 0.12 1.18 0.17
Total 1
32,143,491 38% 5,928,864 1.70 1.18 0.50
UK A ordable Housing Fund 2018 2020 10,366,038 12% 0 0.28 1.11 0.06
Social and Sustainable Housing 2019 2020 9,520,976 11% 0 0.53 1.09 0.08
Man GPM RI Community Housing Fund 2021 2021 8,858,005 11% 834,980 (0.57) 0.97 0.01
Resonance Real Lettings Property Fund 2013 2020 3,567,060 4% 0 (0.32) 1.21 0.60 2.5%
Simply A ordable Homes 2024 2024 3,654,028 4% 1,225,068 (0.16) 0.97 0.00
Total 1
35,966,106 43% 2,060,047 (0.24) 1.07 0.13
Bridges Social Outcomes Fund 2018 2020 1,672,439 2% 3,835,797 0.69 1.37 1.01 Outperforming
Total 1
1,672,439 2% 3,835,797 0.69 1.37 1.01 target 5
Total 1
69,782,035 84% 11,824,708 2.15 1.14 0.37 4.3%
1
Totals may not sum due to rounding.
2
Value including accrued interest where applicable.
3
TVPI/DPI since Company investment. See below for calculation methodologies used.
Calculation methodologies for TVPI, DPI & IRR:
TVPI (Total Value to Paid in) – (Value at year-end + distributions to date)/Total paid into investment to date
DPI (Distribution to Paid in) – (Distributions to date)/Total paid into investment to date
VIRR (Value IRR) – Internal rate of return, using value at period/year end to be the terminal value and assumed realisation date
4
Since Company IPO.
5
Outperformed fund target, due to the Company investing at a more mature stage of the fund, as Bridges SOF II was part of the seed portfolio at the
Company’s IPO.
Debt & Equity
for Social
Enterprises
High impact
Housing
Social
Outcomes
Contracts
Asset class: Debt and Equity for
Social Enterprises
Many impact-led social enterprises need
capital to grow and increase their impact,
as well as to satisfy their existing working
capital requirements. The Company’s
portfolio is designed to include a
diversi ed set of investments, including
charity bonds, asset-backed lending and
portfolios of secured loans, and funds that
invest in established social enterprises via
debt and/or equity. The underlying
charities and social enterprises deliver
interventions to support the most
disadvantaged or vulnerable members of
society, in areas such as health and social
care, and often bene t from
Government-backed revenue streams.
As at 30 June 2025, the value of
investments in this asset class was £32.1m
(38% of 30 June 2025 NAV). The Company
has committed £38.1m (46% of NAV) to
investments in this asset class, £5.9m
(7%Jof NAV) of which remains undrawn at
the year end.
The Bridges Inclusive Growth Fund
(formerly BEH) run by Bridges Fund
Management, is a patient equity fund that
invests in growth-stage, cash-generative
businesses that are purpose-driven and
capable of delivering measurable bene ts to
underserved communities, across three
core outcome areas: physical health, mental
health, and economic and social inclusion.
During the year, the fund was converted
from an evergreen to a closed-ended
structure and was re-named. The fund is led
by Emma Thorne, who took over leadership
of the fund last year, and is a Partner at
Bridges Fund Management, having been
with the rm for the last ten years.
As at 30 June 2025, the Company’s
investment was valued at £5.1m (6% of NAV)
and was 48% drawn, following the recallable
distribution of £6.0m to investors following
the restructure, representing the Company’s
share of proceeds from the exit of portfolio
company AgilityEco. In addition to the
recallable capital distribution, the fund also
made a one-o non-recallable income
distribution of £0.7m to the Company from
the proceeds of the sale. This income
payment was o set by a slightly larger
negative impact on the value of the
Company’s interest, which a ected the
Company as an early investor in the fund,
leading to an overall detraction from the
Company’s NAV per share of 0.37p. Post
year end, the investors agreed an
amendment to the transaction
documentation to include a ratchet
mechanism that will allow earlier investors
(including the Company) to be
compensated for the restructuring loss
through a larger share of realised returns
distributions at fund maturity.
As at June 2025, the fund had two
remaining investments in its portfolio: New
Re exions and the Ethical Housing
Company. During the year, the Bridges
Inclusive Growth Fund made aJfollow-on
investment in New Re exions, increasing
its stake in the company. After year end,
the fund made a new investment into Alina
Homecare, a UK care provider which helps
vulnerable elderly people live
independently at home, the rst
investment under the new strategy
following the restructuring.
Fund impact performance remains strong:
since the Company’s investment, the
fundJhas generated energy eCciencies
forJover 130,000 households, delivered
98Ja ordable homes for 227 people, of
which 40% were homeless or at risk of
homelessness, and supported 68 young
people in care.
The Charity Bond Portfolio, managed by
Rathbones, supports larger UK charities
seeking to raise capital via the public and
private bond markets, providing an
alternative source of funding to bank
nance. As at 30 June 2025, the Company’s
investment was valued at £14.5m (17% of
NAV). The portfolio is invested in nine bonds
(both listed and unlisted) issued by charities
and social enterprises through the Allia C&C
and Triodos Crowdfunding platforms,
predominantly delivering care and housing
services with Government revenue. The
portfolio delivered a net income yield of
4.22% for the year, and contributed 1.10p to
Company NAV per share. The impacts
achieved by Charity Bond Portfolio
companies in the year included over 10,900
a ordable homes provided, intensive
support including care, education, training,
employability and housing provision to
more than 6,000Jpeople with health
conditions or special educational needs and
13,105 rural properties connected with
broadband.
The Community Investment Fund (“CIF”),
managed by Social and Sustainable Capital,
provides secured loans to charities and
social enterprises focused on community
renewable energy, social housing, and
family support in the community. A high
proportion of revenue comes from
Government-mandated sources. As at
30JJune 2025, the Company’s investment
was valued at £5.1m (6% of NAV). During
the year the Fund contributed 0.21p to
Company NAV per share from interest
income. Impact performance during the
year included 353 tenants housed to date
in CIFJproperties, and a total of 521 people
supported by 12 social organisations
providing essential services, including
housing, care and training.
The Charity Bank Co-investment Portfolio
comprises two secured loans with a total
value as at 30 June 2025 of £1.6m (2% of
NAV), following the loan repayment from
Abbey eld York during the year. Working
with Charity Bank, the portfolio invests in
housing and care related loans to housing
and care providers Abbey eld South Downs
and Uxbridge United Welfare Trust. These
loans have a low loan-to-value ratio (average
42.4%). All loans are priced at a margin over
the Bank of England base rate and delivered
a 0.28p contribution to Company NAV per
share over the year. Impact performance in
the year includes the development of 48
housing units for the elderly, of which 33 are
a ordable rent.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
18
Section 1: Strategic Report
Social Enterprises
Many impact-led social enterprises need
capital to grow and increase their impact,
as well as to satisfy their existing working
capital requirements. The Company’s
portfolio is designed to include a
diversi ed set of investments, including
charity bonds, asset-backed lending and
portfolios of secured loans, and funds that
invest in established social enterprises via
debt and/or equity. The underlying
charities and social enterprises deliver
interventions to support the most
disadvantaged or vulnerable members of
society, in areas such as health and social
care, and often bene t from
Government-backed revenue streams.
As at 30 June 2025, the value of
investments in this asset class was £32.1m
(38% of 30 June 2025 NAV). The Company
has committed £38.1m (46% of NAV) to
investments in this asset class, £5.9m
(7%Jof NAV) of which remains undrawn at
the year end.
The Bridges Inclusive Growth Fund
(formerly BEH) run by Bridges Fund
Management, is a patient equity fund that
invests in growth-stage, cash-generative
businesses that are purpose-driven and
capable of delivering measurable bene ts to
underserved communities, across three
core outcome areas: physical health, mental
health, and economic and social inclusion.
During the year, the fund was converted
from an evergreen to a closed-ended
structure and was re-named. The fund is led
by Emma Thorne, who took over leadership
of the fund last year, and is a Partner at
Bridges Fund Management, having been
with the rm for the last ten years.
As at 30 June 2025, the Company’s
investment was valued at £5.1m (6% of NAV)
and was 48% drawn, following the recallable
distribution of £6.0m to investors following
the restructure, representing the Company’s
share of proceeds from the exit of portfolio
company AgilityEco. In addition to the
recallable capital distribution, the fund also
made a one-o non-recallable income
distribution of £0.7m to the Company from
the proceeds of the sale. This income
payment was o set by a slightly larger
negative impact on the value of the
Company’s interest, which a ected the
Company as an early investor in the fund,
leading to an overall detraction from the
Company’s NAV per share of 0.37p. Post
year end, the investors agreed an
amendment to the transaction
documentation to include a ratchet
mechanism that will allow earlier investors
(including the Company) to be
compensated for the restructuring loss
through a larger share of realised returns
distributions at fund maturity.
As at June 2025, the fund had two
remaining investments in its portfolio: New
Re exions and the Ethical Housing
Company. During the year, the Bridges
Inclusive Growth Fund made aJfollow-on
investment in New Re exions, increasing
its stake in the company. After year end,
the fund made a new investment into Alina
Homecare, a UK care provider which helps
vulnerable elderly people live
independently at home, the rst
investment under the new strategy
following the restructuring.
Fund impact performance remains strong:
since the Company’s investment, the
fundJhas generated energy eCciencies
forJover 130,000 households, delivered
98Ja ordable homes for 227 people, of
which 40% were homeless or at risk of
homelessness, and supported 68 young
people in care.
The Charity Bond Portfolio, managed by
Rathbones, supports larger UK charities
seeking to raise capital via the public and
private bond markets, providing an
alternative source of funding to bank
nance. As at 30 June 2025, the Company’s
investment was valued at £14.5m (17% of
NAV). The portfolio is invested in nine bonds
(both listed and unlisted) issued by charities
and social enterprises through the Allia C&C
and Triodos Crowdfunding platforms,
predominantly delivering care and housing
services with Government revenue. The
portfolio delivered a net income yield of
4.22% for the year, and contributed 1.10p to
Company NAV per share. The impacts
achieved by Charity Bond Portfolio
companies in the year included over 10,900
a ordable homes provided, intensive
support including care, education, training,
employability and housing provision to
more than 6,000Jpeople with health
conditions or special educational needs and
13,105 rural properties connected with
broadband.
The Community Investment Fund (“CIF”),
managed by Social and Sustainable Capital,
provides secured loans to charities and
social enterprises focused on community
renewable energy, social housing, and
family support in the community. A high
proportion of revenue comes from
Government-mandated sources. As at
30JJune 2025, the Company’s investment
was valued at £5.1m (6% of NAV). During
the year the Fund contributed 0.21p to
Company NAV per share from interest
income. Impact performance during the
year included 353 tenants housed to date
in CIFJproperties, and a total of 521 people
supported by 12 social organisations
providing essential services, including
housing, care and training.
The Charity Bank Co-investment Portfolio
comprises two secured loans with a total
value as at 30 June 2025 of £1.6m (2% of
NAV), following the loan repayment from
Abbey eld York during the year. Working
with Charity Bank, the portfolio invests in
housing and care related loans to housing
and care providers Abbey eld South Downs
and Uxbridge United Welfare Trust. These
loans have a low loan-to-value ratio (average
42.4%). All loans are priced at a margin over
the Bank of England base rate and delivered
a 0.28p contribution to Company NAV per
share over the year. Impact performance in
the year includes the development of 48
housing units for the elderly, of which 33 are
a ordable rent.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
18
Section 1: Strategic Report
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
19
Community Energy Together Limited
(“CETL”) is a community renewable energy
project company, contributing to a “Just
transition to net zero”. The investment is in
the form of a junior loan of £3.6m,
alongside Better Society Capital and Power
to Change. The loan has a ve-year term
and targets an internal rate of return of
8.2% ( xed coupon of 7% per annum and
additional rolled up interest paid at exit).
The investment is strongly aligned with the
Company’s investment thesis: CETL will
deliver positive social outcomes for
communities alongside a good risk-adjusted
nancial return. CETL is aJpartnership of
veJcommunity organisations that have
acquired seven cross-collateralised solar
farm assets across the UK. These solar
farms bene t from Government-backed
subsidies (Feed-in-Tari s and Renewables
Obligation Certi cate schemes) and the
assets are funded on a cross-collateralised
basis for scale and risk-sharing. As at
30JJune 2025, the Company’s investment
was valued at £3.3m (4% of NAV) following
£0.4m of capital repayments in the year.
During the year, the investment contributed
0.36p to Company NAV per share from
interest income. In terms of its impact, CETL
has 36MW of installed renewable energy
capacity, avoided 5,500 tonnes of CO2
emissions and allocated £34,000 in
community bene ts funds in theJyear.
The Company’s investment in a private
bond issued by Triodos Bank UK Ltd was
valued as at 30 June 2025 at £2.5m (3% of
NAV). Triodos Bank is a leading lender to
sustainability and social impact focused
organisations. This includes social housing,
healthcare, education, renewable energy,
arts and culture, and community projects.
The bond issue enables Triodos Bank to
continue to grow its loan book and
contribute to the resilience and growth of
charities and social enterprises. Triodos
Bank UK remains well capitalised and with
good liquidity (Equity Ratio of 22.1% and
aJtotal capital ratio of 22.7% as at
31JDecember 2024). The bond contributed
0.12p to Company NAV per share. Impact
performance in the year included the
nancing of 127 social housing projects,
26,300 acres of nature, conservation land
and sustainable forestry protected, and
359MW of renewable energy generated.
Asset class: High Impact Housing
The portfolio is invested in a ordable and
social housing, which is intended to address
the housing needs of a wide spectrum of
people, who are often those on the lowest
incomes and the most vulnerable. We invest
across a range of asset types, from
long-term in ation-linked lease contracts
with high-quality counterparties to shorter
leases to address speci c issues, such as
homelessness or the housing needs of
survivors of domestic abuse. Counterparties
include Registered Providers of social
housing (such as housing associations) and
charities with long-standing track records,
deep expertise in addressing speci c issues,
and strong local relationships with
authorities and bene ciaries.
In addressing these needs, we seek to
deliver returns that are often supported by
the Government-backed housing bene t
system. This has led to a lower historical
correlation to mainstream markets and
insulation from the sharper price
movements in the private housing market.
The portfolio has a diversi ed exposure to
rental streams which are increasing for
aJrange of reasons in the current
environment.
The UK A ordable Housing and the Man
Community Housing funds have seen social
& a ordable rents increase following the
removal of the Government cap on social
rent, and Local Housing Allowance rates
increasing in April 2024. Furthermore, the
Government announced their rent
settlement in October 2024, allowing rents
to rise by CPI + 1% starting in April 2026.
This settlement was increased from
veJyears to tenJyears in the June Spending
Review, providing greater certainty to
housing associations and investors. We
expect to see the e ects of this coming
through in the next year.
The Social and Sustainable Housing (“SASH”)
portfolio is primarily “Exempt
Accommodation” for high need groups
within which rents have been increasing in
line with in ation. The Real Lettings Portfolio
is primarily Local Housing Allowance, which
has been increased by an average of 13%
across the fund’s portfolio, following several
years of being frozen. We note some of the
challenges previously experienced by listed
Social Property REITs – often linked to the
short operating history and limited delivery
experience of property counterparties. We
are not seeing any comparable issues in our
High Impact Housing investments – with
100% of rent due by June 2025 collected.
As at 30 June 2025, the value of investments
in this asset class is £36.0m (43% of 30 June
2025 NAV). The Company has committed
£38.0m (45% of NAV) to investments in this
asset class, £2.1m (2% of NAV) of which
remains undrawn at the year end.
The UK A ordable Housing Fund, managed
by CBRE Investment Management, aims to
increase the supply of sustainable and
a ordable homes for people unable to
purchase or rent in the open market. The
fund targets a total return greater than 6%
(with an annual target income distribution
yield of 4% from income producing assets)
net of all costs over the long term. The
Company’s investment is fully deployed
and valued at £10.4m (12% of NAV). The
fund contributed 0.28p to Company NAV
per share growth mainly due to a greater
proportion of assets becoming income
producing. On impact performance, the
fund has so far delivered 1,845 homes,
housing 7,352 people.
RLPF1, managed by Resonance Impact
Investments Limited, provides high quality
accommodation and support for people
previously homeless or at risk of
homelessness, in its 259 homes across
London. The fund leases the properties to
experienced housing partners (Notting Hill
Genesis, Capital Letters and St. Mungo’s)
who manage the tenancies and support
tenants, helping them access support
Community Energy Together Limited
(“CETL”) is a community renewable energy
project company, contributing to a “Just
transition to net zero”. The investment is in
the form of a junior loan of £3.6m,
alongside Better Society Capital and Power
to Change. The loan has a ve-year term
and targets an internal rate of return of
8.2% ( xed coupon of 7% per annum and
additional rolled up interest paid at exit).
The investment is strongly aligned with the
Company’s investment thesis: CETL will
deliver positive social outcomes for
communities alongside a good risk-adjusted
nancial return. CETL is aJpartnership of
veJcommunity organisations that have
acquired seven cross-collateralised solar
farm assets across the UK. These solar
farms bene t from Government-backed
subsidies (Feed-in-Tari s and Renewables
Obligation Certi cate schemes) and the
assets are funded on a cross-collateralised
basis for scale and risk-sharing. As at
30JJune 2025, the Company’s investment
was valued at £3.3m (4% of NAV) following
£0.4m of capital repayments in the year.
During the year, the investment contributed
0.36p to Company NAV per share from
interest income. In terms of its impact, CETL
has 36MW of installed renewable energy
capacity, avoided 5,500 tonnes of CO2
emissions and allocated £34,000 in
community bene ts funds in theJyear.
The Company’s investment in a private
bond issued by Triodos Bank UK Ltd was
valued as at 30 June 2025 at £2.5m (3% of
NAV). Triodos Bank is a leading lender to
sustainability and social impact focused
organisations. This includes social housing,
healthcare, education, renewable energy,
arts and culture, and community projects.
The bond issue enables Triodos Bank to
continue to grow its loan book and
contribute to the resilience and growth of
charities and social enterprises. Triodos
Bank UK remains well capitalised and with
good liquidity (Equity Ratio of 22.1% and
aJtotal capital ratio of 22.7% as at
31JDecember 2024). The bond contributed
0.12p to Company NAV per share. Impact
performance in the year included the
nancing of 127 social housing projects,
26,300 acres of nature, conservation land
and sustainable forestry protected, and
359MW of renewable energy generated.
Asset class: High Impact Housing
The portfolio is invested in a ordable and
social housing, which is intended to address
the housing needs of a wide spectrum of
people, who are often those on the lowest
incomes and the most vulnerable. We invest
across a range of asset types, from
long-term in ation-linked lease contracts
with high-quality counterparties to shorter
leases to address speci c issues, such as
homelessness or the housing needs of
survivors of domestic abuse. Counterparties
include Registered Providers of social
housing (such as housing associations) and
charities with long-standing track records,
deep expertise in addressing speci c issues,
and strong local relationships with
authorities and bene ciaries.
In addressing these needs, we seek to
deliver returns that are often supported by
the Government-backed housing bene t
system. This has led to a lower historical
correlation to mainstream markets and
insulation from the sharper price
movements in the private housing market.
The portfolio has a diversi ed exposure to
rental streams which are increasing for
aJrange of reasons in the current
environment.
The UK A ordable Housing and the Man
Community Housing funds have seen social
& a ordable rents increase following the
removal of the Government cap on social
rent, and Local Housing Allowance rates
increasing in April 2024. Furthermore, the
Government announced their rent
settlement in October 2024, allowing rents
to rise by CPI + 1% starting in April 2026.
This settlement was increased from
veJyears to tenJyears in the June Spending
Review, providing greater certainty to
housing associations and investors. We
expect to see the e ects of this coming
through in the next year.
The Social and Sustainable Housing (“SASH”)
portfolio is primarily “Exempt
Accommodation” for high need groups
within which rents have been increasing in
line with in ation. The Real Lettings Portfolio
is primarily Local Housing Allowance, which
has been increased by an average of 13%
across the fund’s portfolio, following several
years of being frozen. We note some of the
challenges previously experienced by listed
Social Property REITs – often linked to the
short operating history and limited delivery
experience of property counterparties. We
are not seeing any comparable issues in our
High Impact Housing investments – with
100% of rent due by June 2025 collected.
As at 30 June 2025, the value of investments
in this asset class is £36.0m (43% of 30 June
2025 NAV). The Company has committed
£38.0m (45% of NAV) to investments in this
asset class, £2.1m (2% of NAV) of which
remains undrawn at the year end.
The UK A ordable Housing Fund, managed
by CBRE Investment Management, aims to
increase the supply of sustainable and
a ordable homes for people unable to
purchase or rent in the open market. The
fund targets a total return greater than 6%
(with an annual target income distribution
yield of 4% from income producing assets)
net of all costs over the long term. The
Company’s investment is fully deployed
and valued at £10.4m (12% of NAV). The
fund contributed 0.28p to Company NAV
per share growth mainly due to a greater
proportion of assets becoming income
producing. On impact performance, the
fund has so far delivered 1,845 homes,
housing 7,352 people.
RLPF1, managed by Resonance Impact
Investments Limited, provides high quality
accommodation and support for people
previously homeless or at risk of
homelessness, in its 259 homes across
London. The fund leases the properties to
experienced housing partners (Notting Hill
Genesis, Capital Letters and St. Mungo’s)
who manage the tenancies and support
tenants, helping them access support
services and become part of local
communities. Capital Letters announced
their closure by the end of 2025; the
12Jhomes they currently lease will be
transferred to Chisel Housing. The fund
has an overall target return of 6% and a
3.5% annual cash yield. As at 30JJune, the
Company’s investment was valued at
£3.6m (4% of NAV), following the second
partial exit at NAV of £1.8m earlier in the
year. The two partial exits from the fund
delivered a realised return of 6%, in line
with the fund target. However, following
the exit, a change in valuer led to a
valuation decrease of the remaining
position, re ecting more conservative
assumptions on discount rates and
London property price outlook. As a result,
the fund had a negative contribution to
the Company’s NAV per share of 0.32p. On
impact performance, 627 people were
being housed and supported by the fund.
The Man GPM RI Community Housing Fund
aims to address the UK’s housing crisis
through the provision of new a ordable
rental and shared ownership homes. The
target is for 70% of its homes to be
a ordable and delivered in mixed-tenure
communities, predominantly leased to
housing associations. The fund seeks to
achieve returns driven by long-term
in ation-linked income streams, with a net
stabilised yield of 3.5% from income
producing assets (revised down from the
original target of 5% due to the current
increased cost of borrowing). During the
year, the fund drew down £1.2m and as at
30 June 2025 the Company’s investment
was valued at £8.9m (11% of NAV). Fund
valuations were negatively impacted by
market factors, resulting in a detraction
from the Company’s NAV per share of
0.57p. On impact performance, 435 homes
have been completed as at December
2024, with an estimated 1,661 people
housed to date.
SASH, managed by Social and Sustainable
Capital, provides investment to high-
performing social sector organisations with
local knowledge and networks, and aJstrong
track record of managing transitional
supported housing for vulnerable individuals.
They may include survivors of domestic
violence, children leaving the care system,
ex-o enders, asylum seekers, people with
complex mental health issues and people
with addiction issues. SASH makes exible
secured loans which participate in changes
inJproperty prices and rental incomes –
generated from Government-backed rental
payments with a target net return of 5.5%. As
at 30 June 2025, the Company’s investment
was valued at £9.5m (11% of NAV). The fund
contributed 0.53p to Company NAV per
share growth during the year, primarily due
to rental income received. The fund reached
the end of its investment period, and is now
considered fully drawn, with the remainder
£0.49m of undrawn commitment being
cancelled. On impact performance, the fund
has over 2,000 people in 491 houses
purchased with SASH 1 funding, while
contributing more consistent and higher
quality service provision.
SAH, managed by Savills Investment
Management, seeks to deliver a ordable
homes across the UK, by using its
established strategic partnerships with high
quality housing associations, developers,
and housebuilders, through a mix of
acquiring existing stock and delivering new
build homes. The fund will invest in and
manage a diversi ed portfolio of a ordable
housing, comprising both a ordable and
social-rent homes as well as
shared-ownership homes, generating
in ation-linked income streams. As a new
commitment in March 2024, the fund drew
down £3.8m in the year, and as at 30 June
2025, was valued at £3.7m (4% of NAV). The
fund detracted 0.16p from Company NAV
per share, primarily due to rental income
received being o set by fees, expenses and
transaction costs, and some unrealised
capital losses in underlying properties.
OnJimpact performance, the fund owns
367Jhomes in England housing over 800
people, of which 80% are a ordable and
intermediate rent, and 20% are shared
ownership. All homes are minimum EPC B
rated for energy eCciency, above the
median EPC rating of C across England
8
, and
about a fth of homes have heating
provided by air source heat pumps rather
than gas boilers. Furthermore, the fund
adopted the “Sustainability Impact” label in
February 2025, under the SDR rules.
Asset class: Social Outcomes
Contracts
Social Outcomes Contracts aim to help the
Government achieve better life outcomes for
vulnerable people at better value for public
funds. They are public sector contracts
designed to overcome challenges in the way
that public services have traditionally been
delivered. The providers of these services
are paid for achieving speci ed and
measurable outcomes rather than
prescribed inputs. Investment is used to
cover the upfront costs incurred to deliver
the service, which ultimately produces the
desired social outcomes. We look to invest in
a pool of outcomes contracts that is
diversi ed across central and local
Government commissioners and di erent
policy areas. As at 30 June 2025, the fund
had 13 contracts in the portfolio, most of
them in mature stages receiving payments
as outcomes are achieved. As at 30 June
2025, the value of investments in this asset
class is £1.7m (2% of NAV). The Company’s
remaining exposure to health investments in
this asset class (after distributions of £1.9m
during the year) is £5.5m (7% of NAV), £3.8m
(5% of NAV) of which remains undrawn at
the year end. Bridges Social Outcomes Fund
II, managed by Bridges Fund Management
and Bridges Outcomes Partnerships,
contributed 0.69p to Company NAV per
share performance during the year with
overall outcomes payments running in line
with plan. So far, the fund has supported
41,722 people across health, homelessness,
education, employment and family care
services, achieving £114m outcomes
payments to date.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
20
Section 1: Strategic Report
8
Source: Energy ECciency of Housing in England and Wales, 2024:
https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/energyeCciencyofhousinginenglandandwales/2024.
communities. Capital Letters announced
their closure by the end of 2025; the
12Jhomes they currently lease will be
transferred to Chisel Housing. The fund
has an overall target return of 6% and a
3.5% annual cash yield. As at 30JJune, the
Company’s investment was valued at
£3.6m (4% of NAV), following the second
partial exit at NAV of £1.8m earlier in the
year. The two partial exits from the fund
delivered a realised return of 6%, in line
with the fund target. However, following
the exit, a change in valuer led to a
valuation decrease of the remaining
position, re ecting more conservative
assumptions on discount rates and
London property price outlook. As a result,
the fund had a negative contribution to
the Company’s NAV per share of 0.32p. On
impact performance, 627 people were
being housed and supported by the fund.
The Man GPM RI Community Housing Fund
aims to address the UK’s housing crisis
through the provision of new a ordable
rental and shared ownership homes. The
target is for 70% of its homes to be
a ordable and delivered in mixed-tenure
communities, predominantly leased to
housing associations. The fund seeks to
achieve returns driven by long-term
in ation-linked income streams, with a net
stabilised yield of 3.5% from income
producing assets (revised down from the
original target of 5% due to the current
increased cost of borrowing). During the
year, the fund drew down £1.2m and as at
30 June 2025 the Company’s investment
was valued at £8.9m (11% of NAV). Fund
valuations were negatively impacted by
market factors, resulting in a detraction
from the Company’s NAV per share of
0.57p. On impact performance, 435 homes
have been completed as at December
2024, with an estimated 1,661 people
housed to date.
SASH, managed by Social and Sustainable
Capital, provides investment to high-
performing social sector organisations with
local knowledge and networks, and aJstrong
track record of managing transitional
supported housing for vulnerable individuals.
They may include survivors of domestic
violence, children leaving the care system,
ex-o enders, asylum seekers, people with
complex mental health issues and people
with addiction issues. SASH makes exible
secured loans which participate in changes
inJproperty prices and rental incomes –
generated from Government-backed rental
payments with a target net return of 5.5%. As
at 30 June 2025, the Company’s investment
was valued at £9.5m (11% of NAV). The fund
contributed 0.53p to Company NAV per
share growth during the year, primarily due
to rental income received. The fund reached
the end of its investment period, and is now
considered fully drawn, with the remainder
£0.49m of undrawn commitment being
cancelled. On impact performance, the fund
has over 2,000 people in 491 houses
purchased with SASH 1 funding, while
contributing more consistent and higher
quality service provision.
SAH, managed by Savills Investment
Management, seeks to deliver a ordable
homes across the UK, by using its
established strategic partnerships with high
quality housing associations, developers,
and housebuilders, through a mix of
acquiring existing stock and delivering new
build homes. The fund will invest in and
manage a diversi ed portfolio of a ordable
housing, comprising both a ordable and
social-rent homes as well as
shared-ownership homes, generating
in ation-linked income streams. As a new
commitment in March 2024, the fund drew
down £3.8m in the year, and as at 30 June
2025, was valued at £3.7m (4% of NAV). The
fund detracted 0.16p from Company NAV
per share, primarily due to rental income
received being o set by fees, expenses and
transaction costs, and some unrealised
capital losses in underlying properties.
OnJimpact performance, the fund owns
367Jhomes in England housing over 800
people, of which 80% are a ordable and
intermediate rent, and 20% are shared
ownership. All homes are minimum EPC B
rated for energy eCciency, above the
median EPC rating of C across England
8
, and
about a fth of homes have heating
provided by air source heat pumps rather
than gas boilers. Furthermore, the fund
adopted the “Sustainability Impact” label in
February 2025, under the SDR rules.
Asset class: Social Outcomes
Contracts
Social Outcomes Contracts aim to help the
Government achieve better life outcomes for
vulnerable people at better value for public
funds. They are public sector contracts
designed to overcome challenges in the way
that public services have traditionally been
delivered. The providers of these services
are paid for achieving speci ed and
measurable outcomes rather than
prescribed inputs. Investment is used to
cover the upfront costs incurred to deliver
the service, which ultimately produces the
desired social outcomes. We look to invest in
a pool of outcomes contracts that is
diversi ed across central and local
Government commissioners and di erent
policy areas. As at 30 June 2025, the fund
had 13 contracts in the portfolio, most of
them in mature stages receiving payments
as outcomes are achieved. As at 30 June
2025, the value of investments in this asset
class is £1.7m (2% of NAV). The Company’s
remaining exposure to health investments in
this asset class (after distributions of £1.9m
during the year) is £5.5m (7% of NAV), £3.8m
(5% of NAV) of which remains undrawn at
the year end. Bridges Social Outcomes Fund
II, managed by Bridges Fund Management
and Bridges Outcomes Partnerships,
contributed 0.69p to Company NAV per
share performance during the year with
overall outcomes payments running in line
with plan. So far, the fund has supported
41,722 people across health, homelessness,
education, employment and family care
services, achieving £114m outcomes
payments to date.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
20
Section 1: Strategic Report
8
Source: Energy ECciency of Housing in England and Wales, 2024:
https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/energyeCciencyofhousinginenglandandwales/2024.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
21
Section 1: Strategic Report
Liquidity Assets
The Company manages its committed but uncalled capital through Liquidity Assets, which aim to provide suCcient liquidity to meet
impact investment commitments while earning commensurate returns. This allocation can be held as cash or invested in money market
funds, bond funds, real assets investment trusts and other liquidity investments that align with the Company’s liquidity requirements,
meet high ESG standards and comply with the Company’s investment policy. As at 30 June 2025, the Company held £14.1m in Liquidity
Assets 9
, with one redemption during the year (highlighted in grey), as detailed in the table below.
+
Interest rate duration measures the sensitivity of the price of a bond or other debt instrument to a change in interest rates. For our holdings in equity instruments,
discount rate duration has been used as a proxy.
* Return for the nancial year ended 30 June 2025 or up to exit.
Our Liquidity Assets portfolio, representing 16.9% of NAV, contributed 0.52p per share to the Company’s total NAV during the year. The
positive performance was achieved by robust dividend and interest income from underlying investments, as the portfolio bene ted
from overweighting oating rate credit. During the nancial year, we realised gains in the TwentyFour Enhanced Income ABS Fund amid
historically tight credit spreads and falling interest rates, which would impact future income from the fund. The existing portfolio at year
end re ects a focus on generating positive real returns by capturing spreads over cash returns through dividends from investments
with strong ESG credentials, with diversi ed duration exposures, while managing immediate liquidity needs through money market
funds and cash.
Hermina Popa, Jeremy Rogers
Better Society Capital
28 October 2025
Liquidity Assets Inception Year Value at
30 June 2025
(£)
Value
as % of
NAV
Contribution to
the Company’s
total return for
the financial
year (pps)
Total return
for the
financial year
Interest rate
duration
+
TwentyFour Enhanced Income
ABS Fund 2021 – 0.00% 0.08 4.99% (exited)
Blue eld Solar Income Fund Ltd 2021 1,902,692 2.28% 0.01 0.57% 4.76
Greencoat UK Wind Plc 2021 1,220,240 1.46% (0.02) (1.07%) 8.79
Rathbone Ethical Bond Fund 2021 942,835 1.13% 0.09 6.32% 5.55
Cash and money market funds 2020 10,066,453 12.06% 0.36 4.11% 0.11
Total Liquidity Asset Investments* 14,132,220 16.93% 0.52 3.26% 2.45
9
Please note that, for the purpose of portfolio management reporting, this includes money market funds (current asset investments) and cash at bank and in hand.
Money market funds (current asset investments) and cash at bank and in hand are reported separately to other liquidity assets, for the purpose of nancial reporting, on
page 22 under the Investment Portfolio and on page 65 under the Balance Sheet.
Section 1: Strategic Report
Liquidity Assets
The Company manages its committed but uncalled capital through Liquidity Assets, which aim to provide suCcient liquidity to meet
impact investment commitments while earning commensurate returns. This allocation can be held as cash or invested in money market
funds, bond funds, real assets investment trusts and other liquidity investments that align with the Company’s liquidity requirements,
meet high ESG standards and comply with the Company’s investment policy. As at 30 June 2025, the Company held £14.1m in Liquidity
Assets 9
, with one redemption during the year (highlighted in grey), as detailed in the table below.
+
Interest rate duration measures the sensitivity of the price of a bond or other debt instrument to a change in interest rates. For our holdings in equity instruments,
discount rate duration has been used as a proxy.
* Return for the nancial year ended 30 June 2025 or up to exit.
Our Liquidity Assets portfolio, representing 16.9% of NAV, contributed 0.52p per share to the Company’s total NAV during the year. The
positive performance was achieved by robust dividend and interest income from underlying investments, as the portfolio bene ted
from overweighting oating rate credit. During the nancial year, we realised gains in the TwentyFour Enhanced Income ABS Fund amid
historically tight credit spreads and falling interest rates, which would impact future income from the fund. The existing portfolio at year
end re ects a focus on generating positive real returns by capturing spreads over cash returns through dividends from investments
with strong ESG credentials, with diversi ed duration exposures, while managing immediate liquidity needs through money market
funds and cash.
Hermina Popa, Jeremy Rogers
Better Society Capital
28 October 2025
Liquidity Assets Inception Year Value at
30 June 2025
(£)
Value
as % of
NAV
Contribution to
the Company’s
total return for
the financial
year (pps)
Total return
for the
financial year
Interest rate
duration
+
TwentyFour Enhanced Income
ABS Fund 2021 – 0.00% 0.08 4.99% (exited)
Blue eld Solar Income Fund Ltd 2021 1,902,692 2.28% 0.01 0.57% 4.76
Greencoat UK Wind Plc 2021 1,220,240 1.46% (0.02) (1.07%) 8.79
Rathbone Ethical Bond Fund 2021 942,835 1.13% 0.09 6.32% 5.55
Cash and money market funds 2020 10,066,453 12.06% 0.36 4.11% 0.11
Total Liquidity Asset Investments* 14,132,220 16.93% 0.52 3.26% 2.45
9
Please note that, for the purpose of portfolio management reporting, this includes money market funds (current asset investments) and cash at bank and in hand.
Money market funds (current asset investments) and cash at bank and in hand are reported separately to other liquidity assets, for the purpose of nancial reporting, on
page 22 under the Investment Portfolio and on page 65 under the Balance Sheet.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
22
Section 1: Strategic Report
Investment Portfolio
At 30 June 2025
Carrying Total
Listed/ Country of value 1
investments
Holding Nature of interest unlisted incorporation Industry sector £’000 %
CBRE UK A ordable Housing Fund Equity Shares Unlisted United Kingdom A ordable and Social 10,312 12.4
OOHousing
Social and Sustainable Housing LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 9,521 11.4
OOHousing
Man GPM RI Community Housing 1 LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 8,858 10.6
OOHousing
Simply A ordable Homes LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 3,654 4.4
OOHousing
Resonance Real Lettings Property Fund LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 3,568 4.3
OOHousing
High Impact Housing 35,913 43.1
Bridges Inclusive Growth Fund LP Limited Partnership Interest Unlisted United Kingdom Pro t-With-Purpose 5,068 6.1
OOOrganisations
Community Investment Fund Limited Partnership Interest Unlisted United Kingdom Communities Supporting 5,063 6.1
OOSocial Inclusion and
OOChange
Community Energy Together Limited Debt Investment Unlisted United Kingdom Renewable Energy 3,206 3.8
Triodos Bank UK Limited 2020 Bond 4% 23/12/2030 Fixed Income Security Unlisted United Kingdom Ethical Banking 2,500 3.0
Rathbones Bond Portfolio: Hightown Housing Fixed Income Security Listed United Kingdom Charity A ordable and 2,483 3.0
OOAssociation 4% 31/10/2027 OOSocial Housing)
Rathbones Bond Portfolio: Dolphin Square Fixed Income Security Listed United Kingdom Charity (A ordable and 2,450 2.9
OOCharitable Foundation 4.25% 06/07/2026 OOSocial Housing)
Rathbones Bond Portfolio: Greensleeves Homes Fixed Income Security Listed United Kingdom Charity (Care Services) 2,357 2.8
OOTrust 4.25% 30/03/2026
Rathbones Bond Portfolio: Fixed Income Security Listed United Kingdom Ethical Banking 2,223 2.7
OORCB Bonds PLC 3.5% 08/12/2031
Rathbones Bond Portfolio: Alnwick Garden Fixed Income Security Listed United Kingdom Charity (Public Gardens) 1,500 1.8
OOTrust 5% 27/03/2030
Charity Bank Co-Invest Portfolio: Uxbridge United Fixed Income Security Unlisted United Kingdom Charity (Community and 1,454 1.7
OOWelfare Trust 6.35% 12/12/2033 OOSocial Housing)
Rathbones Bond Portfolio: Thera Trust 6% 30/12/2027 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 1,374 1.6
Rathbones Bond Portfolio: Golden Lane Fixed Income Security Listed United Kingdom Charity (A ordable and 952 1.1
OOHousing 3.9% 23/11/2029 OOSocial Housing)
Rathbones Bond Portfolio: B4RN (Broadband for Fixed Income Security Unlisted United Kingdom Communications for 865 1.0
OORural North Limited) 4.5% 30/04/2026 OORural Communities
Rathbones Bond Portfolio: Coigach Community Fixed Income Security Unlisted United Kingdom Renewable Energy 187 0.2
OOCIC 7.049% 31/03/2030
Charity Bank Co-Invest Portfolio: Abbey eld Fixed Income Security Unlisted United Kingdom Charity (Care Services) 149 0.2
OOSouthdowns 6.25% 12/10/2028
Debt and Equity for Social Enterprises 31,831 38.0
Bridges Social Outcomes Fund II LP Limited Partnership Interest Unlisted United Kingdom Social Outcomes Contracts 1,672 2.0
Social Outcomes Contracts 1,672 2.0
Blue eld Solar Income Fund Equity Shares Listed Guernsey Renewable Energy 1,903 2.3
OOInfrastructure
Greencoat UK Wind Plc Fund Equity Shares Listed United Kingdom Renewable Energy 1,220 1.5
OOInfrastructure
Rathbone Ethical Bond Fund Equity Shares Listed United Kingdom Diversi ed 942 1.1
Liquidity Assets 4,065 4.9
Total investments 2
73,481 88.0
Cash at bank and in hand 1,057 1.3
Money market funds 3
9,009 10.8
Other net liabilities (60) (0.1)
Total Shareholders’ funds 83,487 100.0
1
Fixed income securities amounting to £18,494,000 are included at amortised cost, excluding any accrued interest. These include investments amounting to £11,965,000
which are listed, but traded in inactive markets.
2
Total investments comprise:
£’000 %
Unquoted 57,451 78.2
Listed in the UK 14,127 19.2
Listed on a recognised stock exchange overseas 1,903 2.6
Total 73,481 100.0
3
As at 30 June 2025, the Company’s money market funds holding comprises solely the HSBC Sterling ESG Liquidity Fund.
22
Section 1: Strategic Report
Investment Portfolio
At 30 June 2025
Carrying Total
Listed/ Country of value 1
investments
Holding Nature of interest unlisted incorporation Industry sector £’000 %
CBRE UK A ordable Housing Fund Equity Shares Unlisted United Kingdom A ordable and Social 10,312 12.4
OOHousing
Social and Sustainable Housing LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 9,521 11.4
OOHousing
Man GPM RI Community Housing 1 LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 8,858 10.6
OOHousing
Simply A ordable Homes LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 3,654 4.4
OOHousing
Resonance Real Lettings Property Fund LP Limited Partnership Interest Unlisted United Kingdom A ordable and Social 3,568 4.3
OOHousing
High Impact Housing 35,913 43.1
Bridges Inclusive Growth Fund LP Limited Partnership Interest Unlisted United Kingdom Pro t-With-Purpose 5,068 6.1
OOOrganisations
Community Investment Fund Limited Partnership Interest Unlisted United Kingdom Communities Supporting 5,063 6.1
OOSocial Inclusion and
OOChange
Community Energy Together Limited Debt Investment Unlisted United Kingdom Renewable Energy 3,206 3.8
Triodos Bank UK Limited 2020 Bond 4% 23/12/2030 Fixed Income Security Unlisted United Kingdom Ethical Banking 2,500 3.0
Rathbones Bond Portfolio: Hightown Housing Fixed Income Security Listed United Kingdom Charity A ordable and 2,483 3.0
OOAssociation 4% 31/10/2027 OOSocial Housing)
Rathbones Bond Portfolio: Dolphin Square Fixed Income Security Listed United Kingdom Charity (A ordable and 2,450 2.9
OOCharitable Foundation 4.25% 06/07/2026 OOSocial Housing)
Rathbones Bond Portfolio: Greensleeves Homes Fixed Income Security Listed United Kingdom Charity (Care Services) 2,357 2.8
OOTrust 4.25% 30/03/2026
Rathbones Bond Portfolio: Fixed Income Security Listed United Kingdom Ethical Banking 2,223 2.7
OORCB Bonds PLC 3.5% 08/12/2031
Rathbones Bond Portfolio: Alnwick Garden Fixed Income Security Listed United Kingdom Charity (Public Gardens) 1,500 1.8
OOTrust 5% 27/03/2030
Charity Bank Co-Invest Portfolio: Uxbridge United Fixed Income Security Unlisted United Kingdom Charity (Community and 1,454 1.7
OOWelfare Trust 6.35% 12/12/2033 OOSocial Housing)
Rathbones Bond Portfolio: Thera Trust 6% 30/12/2027 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 1,374 1.6
Rathbones Bond Portfolio: Golden Lane Fixed Income Security Listed United Kingdom Charity (A ordable and 952 1.1
OOHousing 3.9% 23/11/2029 OOSocial Housing)
Rathbones Bond Portfolio: B4RN (Broadband for Fixed Income Security Unlisted United Kingdom Communications for 865 1.0
OORural North Limited) 4.5% 30/04/2026 OORural Communities
Rathbones Bond Portfolio: Coigach Community Fixed Income Security Unlisted United Kingdom Renewable Energy 187 0.2
OOCIC 7.049% 31/03/2030
Charity Bank Co-Invest Portfolio: Abbey eld Fixed Income Security Unlisted United Kingdom Charity (Care Services) 149 0.2
OOSouthdowns 6.25% 12/10/2028
Debt and Equity for Social Enterprises 31,831 38.0
Bridges Social Outcomes Fund II LP Limited Partnership Interest Unlisted United Kingdom Social Outcomes Contracts 1,672 2.0
Social Outcomes Contracts 1,672 2.0
Blue eld Solar Income Fund Equity Shares Listed Guernsey Renewable Energy 1,903 2.3
OOInfrastructure
Greencoat UK Wind Plc Fund Equity Shares Listed United Kingdom Renewable Energy 1,220 1.5
OOInfrastructure
Rathbone Ethical Bond Fund Equity Shares Listed United Kingdom Diversi ed 942 1.1
Liquidity Assets 4,065 4.9
Total investments 2
73,481 88.0
Cash at bank and in hand 1,057 1.3
Money market funds 3
9,009 10.8
Other net liabilities (60) (0.1)
Total Shareholders’ funds 83,487 100.0
1
Fixed income securities amounting to £18,494,000 are included at amortised cost, excluding any accrued interest. These include investments amounting to £11,965,000
which are listed, but traded in inactive markets.
2
Total investments comprise:
£’000 %
Unquoted 57,451 78.2
Listed in the UK 14,127 19.2
Listed on a recognised stock exchange overseas 1,903 2.6
Total 73,481 100.0
3
As at 30 June 2025, the Company’s money market funds holding comprises solely the HSBC Sterling ESG Liquidity Fund.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
23
Section 1: Strategic Report
Material unquoted holdings (comprising more than 5% of the portfolio and/or included in the top ten)
Income
receivable
Cost of the Fair in the
investment value year
Holding Description of the business £’000 £’000 £’000
CBRE UK A ordable Housing Fund 9,906 10,312 202
Social and Sustainable Housing LP 9,370 9,521 364
Man GPM RI Community Housing 1 LP 9,165 8,858 –
Bridges Inclusive Growth Fund LP 4,998 5,068 669
Community Investment Fund 4,007 5,063 100
Simply A ordable Homes LP 3,775 3,654 –
Resonance Real Lettings Property Fund LP 3,027 3,568 136
Community Energy Together Limited 3,207 3,206 292
Triodos Bank UK Limited 2020 2,500 2,500 100
Bond 4% 23/12/2030
Charity Bank Co-Invest Portfolio: Uxbridge 1,454 1,454 104
United Welfare Trust 6.35% 12/12/2033
Section 82 of the AIC SORP requires the Company to disclose turnover, pre-tax pro ts and net assets attributable to shareholders at the
valuation date. Where such information is not publicly available, this has not been disclosed. Please refer to the nancial statements on
pages 63 to 79 for these disclosures.
Delivering a ordable and sustainable homes for
those unable to purchase or rent in the open market.
Secured lending to leading charities supporting
vulnerable people through housing.
Mixed tenure a ordable homes bene ting more
disadvantaged groups leased to local authorities
and housing associations.
A patient equity fund that invests in growth-stage,
cash-generative businesses that are purpose-driven
and capable of delivering measurable bene ts to
underserved communities.
An evergreen fund that makes majority secured
loans to charities and social enterprises across the
UK.
Fund providing social & a ordable housing across
the UK through acquisitions of existing stock &
development of high quality new housing.
Homes for families and individuals at risk of
homelessness leased to large charities delivering
support services.
A partnership of ve community organisations that
own solar farm assets across the UK.
Co-investments into secured oating rate loans to
charities bene ting more disadvantaged groups.
Direct investment in a private bond supporting
growth of the leading secured lender to
sustainability and social impact organisations.
Section 1: Strategic Report
Material unquoted holdings (comprising more than 5% of the portfolio and/or included in the top ten)
Income
receivable
Cost of the Fair in the
investment value year
Holding Description of the business £’000 £’000 £’000
CBRE UK A ordable Housing Fund 9,906 10,312 202
Social and Sustainable Housing LP 9,370 9,521 364
Man GPM RI Community Housing 1 LP 9,165 8,858 –
Bridges Inclusive Growth Fund LP 4,998 5,068 669
Community Investment Fund 4,007 5,063 100
Simply A ordable Homes LP 3,775 3,654 –
Resonance Real Lettings Property Fund LP 3,027 3,568 136
Community Energy Together Limited 3,207 3,206 292
Triodos Bank UK Limited 2020 2,500 2,500 100
Bond 4% 23/12/2030
Charity Bank Co-Invest Portfolio: Uxbridge 1,454 1,454 104
United Welfare Trust 6.35% 12/12/2033
Section 82 of the AIC SORP requires the Company to disclose turnover, pre-tax pro ts and net assets attributable to shareholders at the
valuation date. Where such information is not publicly available, this has not been disclosed. Please refer to the nancial statements on
pages 63 to 79 for these disclosures.
Delivering a ordable and sustainable homes for
those unable to purchase or rent in the open market.
Secured lending to leading charities supporting
vulnerable people through housing.
Mixed tenure a ordable homes bene ting more
disadvantaged groups leased to local authorities
and housing associations.
A patient equity fund that invests in growth-stage,
cash-generative businesses that are purpose-driven
and capable of delivering measurable bene ts to
underserved communities.
An evergreen fund that makes majority secured
loans to charities and social enterprises across the
UK.
Fund providing social & a ordable housing across
the UK through acquisitions of existing stock &
development of high quality new housing.
Homes for families and individuals at risk of
homelessness leased to large charities delivering
support services.
A partnership of ve community organisations that
own solar farm assets across the UK.
Co-investments into secured oating rate loans to
charities bene ting more disadvantaged groups.
Direct investment in a private bond supporting
growth of the leading secured lender to
sustainability and social impact organisations.
Schroder BSC Social Impact Trust plcOAnnual Report and Financial Statements 2025
24
Section 1: Strategic Report
Impact Management
Impact measurement and management is
critical to proving and improving the Social
Impact Trust’s investment thesis and is
integrated at every stage of its investment
process. Understanding the impact that is
being achieved is a competitive advantage
for the funds and enterprises the Trust
invests in, reducing risk and creating
long-term value for investors.
As the Social Impact Trust’s Portfolio
Manager, Better Society Capital’s impact
management approach is underpinned by
its insights into the enablers of strong
impact performance, based on extensive
work with more than 100 funds. Better
Society Capital is committed to supporting
fund managers and intermediaries to
assess and develop their impact practice.
The Social Impact Trust’s 2024 Impact
Report includes a section on ndings
about good practice in impact
management from working with fund
managers, focusing on key elements to
strong performance.
In 2025, Better Society Capital was placed
on BlueMark’s Practice Leaderboard for
top quartile performance across all eight
categories of the Operating Principles of
Impact Management (“OPIM”).
As a signatory to the OPIM, Better Society
Capital’s impact systems and processes are
designed to ensure full alignment with the
industry standard for best practice in
impact management. Better Society
Capital undertook its second veri cation
this year, achieving an advanced rating in
seven out of eight principles, and quali ed
as a BlueMark Practice Leader,
demonstrating the strength of its impact
practice. For further details, please see
Better Society Capital’s disclosure and
veri cation statement, which are available
respectively at:
https://bsc.cdn.ngo/media/documents/OPI
M_2025_disclosure_statement.pdf and
https://bluemark.co/app/uploads/2025/05/
bsc-opim-practice-veri cation-statement-
march-2025.pdf.
ESG risk management
The Social Impact Trust aims to maximise
its positive impact on people and the
planet by investing responsibly
considering ESG risks and opportunities,
and managing potential negative impacts
from the Company’s investments. These
responsibilities are set out in Better
Society Capital’s Responsible Investment
Policy, which acts as the basis for the
Company’s ESG management approach.
Details of the Social Impact Trust’s ESG risk
management approach in the investment
process and material ESG risks per asset
class can be found in the SDR
Sustainability Impact Pre-Contractual
Disclosure, which is available on the
Company’s website at:
www.schroders.com/sbsi.
For more information on sustainability
labels, please visit the FCA website at
https://www.fca.org.uk/ rms/climatechang
e-and-sustainablef inance/sustainability-
disclosure-and-labelli ng-regime.
For more details of Better Society Capital’s
sustainability as an organisation as a
Certi ed B Corp, please see Better Society
Capital’s blog, which is available at:
https://bettersocietycapital.com/latest/wal
king-the-talk-big-society-capital-achieves-
b-corp-status/.
Further information on Impact
Management and ESG risk management is
included in the Company’s latest Impact
Report, which is available at:
http://schro.link/impactreport2025.
1
An Annual Impact Conversation is an annual, detailed meeting held with fund managers to discuss and review impact performance, as well as the current state of
impact practice or how impact is embedded along the investment process by incorporating an impact lens into established tools, processes and decision-making. An
Annual Impact Conversation is also an opportunity to review and agree on the Portfolio Manager impact management support to the investees.
24
Section 1: Strategic Report
Impact Management
Impact measurement and management is
critical to proving and improving the Social
Impact Trust’s investment thesis and is
integrated at every stage of its investment
process. Understanding the impact that is
being achieved is a competitive advantage
for the funds and enterprises the Trust
invests in, reducing risk and creating
long-term value for investors.
As the Social Impact Trust’s Portfolio
Manager, Better Society Capital’s impact
management approach is underpinned by
its insights into the enablers of strong
impact performance, based on extensive
work with more than 100 funds. Better
Society Capital is committed to supporting
fund managers and intermediaries to
assess and develop their impact practice.
The Social Impact Trust’s 2024 Impact
Report includes a section on ndings
about good practice in impact
management from working with fund
managers, focusing on key elements to
strong performance.
In 2025, Better Society Capital was placed
on BlueMark’s Practice Leaderboard for
top quartile performance across all eight
categories of the Operating Principles of
Impact Management (“OPIM”).
As a signatory to the OPIM, Better Society
Capital’s impact systems and processes are
designed to ensure full alignment with the
industry standard for best practice in
impact management. Better Society
Capital undertook its second veri cation
this year, achieving an advanced rating in
seven out of eight principles, and quali ed
as a BlueMark Practice Leader,
demonstrating the strength of its impact
practice. For further details, please see
Better Society Capital’s disclosure and
veri cation statement, which are available
respectively at:
https://bsc.cdn.ngo/media/documents/OPI
M_2025_disclosure_statement.pdf and
https://bluemark.co/app/uploads/2025/05/
bsc-opim-practice-veri cation-statement-
march-2025.pdf.
ESG risk management
The Social Impact Trust aims to maximise
its positive impact on people and the
planet by investing responsibly
considering ESG risks and opportunities,
and managing potential negative impacts
from the Company’s investments. These
responsibilities are set out in Better
Society Capital’s Responsible Investment
Policy, which acts as the basis for the
Company’s ESG management approach.
Details of the Social Impact Trust’s ESG risk
management approach in the investment
process and material ESG risks per asset
class can be found in the SDR
Sustainability Impact Pre-Contractual
Disclosure, which is available on the
Company’s website at:
www.schroders.com/sbsi.
For more information on sustainability
labels, please visit the FCA website at
https://www.fca.org.uk/ rms/climatechang
e-and-sustainablef inance/sustainability-
disclosure-and-labelli ng-regime.
For more details of Better Society Capital’s
sustainability as an organisation as a
Certi ed B Corp, please see Better Society
Capital’s blog, which is available at:
https://bettersocietycapital.com/latest/wal
king-the-talk-big-society-capital-achieves-
b-corp-status/.
Further information on Impact
Management and ESG risk management is
included in the Company’s latest Impact
Report, which is available at:
http://schro.link/impactreport2025.
1
An Annual Impact Conversation is an annual, detailed meeting held with fund managers to discuss and review impact performance, as well as the current state of
impact practice or how impact is embedded along the investment process by incorporating an impact lens into established tools, processes and decision-making. An
Annual Impact Conversation is also an opportunity to review and agree on the Portfolio Manager impact management support to the investees.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
25
Section 1: Strategic Report
Business Review
Purpose, values and culture
The Company’s purpose is to create long term shareholder value.
The Company’s culture is driven by its values: Transparency,
Engagement and Rigour, with collegial behaviour and
constructive, robust challenge. These values are centred on
achieving returns for shareholders in line with the Company’s
investment objective. The Board also promotes the eHective
management or mitigation of risks faced by the Company and, to
the extent it does not con ict with the investment objective, aims
to structure the Company’s operations with regard to all its
stakeholders and takes into account the impact of the Company’s
operations on the environment and the community.
As the Company has no employees and acts through its service
providers, its culture is represented by the values and behaviour
of the Board and the third parties to whom it delegates. The
Board aims to ful l the Company’s investment objective by
encouraging a culture of constructive challenge with all key
service providers and openness with all stakeholders. The Board
is responsible for embedding the Company’s culture in the
Company’s operations.
Strategy and business model
The Company is a listed investment trust and has outsourced its
operations to third party service providers.
The Board has appointed the Manager, Schroder Unit Trusts
Limited, to act as the Company’s AIFM for the purposes of the
AIFM Rules. The Board believes that Schroders’ institutional risk
management capabilities and infrastructure provide the stable
and robust platform needed for the e?cient management of the
Company. The AIFM is responsible for providing administrative,
company secretarial and marketing services to the Company.
These include general fund administration services (including
calculation of the NAV based on the data provided by the Portfolio
Manager), bookkeeping, and accounts preparation.
The Company and the AIFM have appointed Better Society Capital
Limited (the “Portfolio Manager”) to provide portfolio
management and related services in respect of the Company’s
portfolio. The terms of the appointments are described more
comprehensively in the Directors’ Report. The Manager also
promotes the Company using its sales and marketing teams. The
Board, Manager and Portfolio Manager work together to deliver
the Company’s investment objective, as demonstrated in the
diagram below. The investment and promotion processes set out
in the diagram are described in more detail on the next page.
d r
providers to achieve
and other service
Portfolio Manager
Appoint Manager, •
Boa
management
Oversee portfolio •
strategy and KPIs
Set objectives,
B
in
R •
c
re
S •
in
t s
im
P
•
Strategy
•
nvestment
Board
n teraction with the
Regular reporting and
ontrol environment
esearch and risk
Supported by strong
nvestment process
ategy by following an r t
mplements the investment
Portfolio Manager
I
Board is
Compe
nvestors
ains attractive
the Company
mpetitive
rges remain
Ongoing
the fees
g:
Impact
Social
Value and
s focused on
etitiveness
Investor
investment objective
p
impact
and positive social
shareholder value
the creation of
Activities centred on •
risk management
Managers including
oversight of
overall strategy and
Responsible for •
d
in
se
C
P
S •
M
ca
M issuance or buybacks
liquidity through share
and the provision of
premium management
Oversee discount/ •
of KPIs
Monitor achievement • B
•
to in
rem
that •
com
Char
and
that •
iscount/premium
ntervention to support
econdary market
Corporate Broker for
Portfolio Manager and
upport from the
Manager
apability of the
Board
Marketing and sales
Promotion
ensurin
management
p
Section 1: Strategic Report
Business Review
Purpose, values and culture
The Company’s purpose is to create long term shareholder value.
The Company’s culture is driven by its values: Transparency,
Engagement and Rigour, with collegial behaviour and
constructive, robust challenge. These values are centred on
achieving returns for shareholders in line with the Company’s
investment objective. The Board also promotes the eHective
management or mitigation of risks faced by the Company and, to
the extent it does not con ict with the investment objective, aims
to structure the Company’s operations with regard to all its
stakeholders and takes into account the impact of the Company’s
operations on the environment and the community.
As the Company has no employees and acts through its service
providers, its culture is represented by the values and behaviour
of the Board and the third parties to whom it delegates. The
Board aims to ful l the Company’s investment objective by
encouraging a culture of constructive challenge with all key
service providers and openness with all stakeholders. The Board
is responsible for embedding the Company’s culture in the
Company’s operations.
Strategy and business model
The Company is a listed investment trust and has outsourced its
operations to third party service providers.
The Board has appointed the Manager, Schroder Unit Trusts
Limited, to act as the Company’s AIFM for the purposes of the
AIFM Rules. The Board believes that Schroders’ institutional risk
management capabilities and infrastructure provide the stable
and robust platform needed for the e?cient management of the
Company. The AIFM is responsible for providing administrative,
company secretarial and marketing services to the Company.
These include general fund administration services (including
calculation of the NAV based on the data provided by the Portfolio
Manager), bookkeeping, and accounts preparation.
The Company and the AIFM have appointed Better Society Capital
Limited (the “Portfolio Manager”) to provide portfolio
management and related services in respect of the Company’s
portfolio. The terms of the appointments are described more
comprehensively in the Directors’ Report. The Manager also
promotes the Company using its sales and marketing teams. The
Board, Manager and Portfolio Manager work together to deliver
the Company’s investment objective, as demonstrated in the
diagram below. The investment and promotion processes set out
in the diagram are described in more detail on the next page.
d r
providers to achieve
and other service
Portfolio Manager
Appoint Manager, •
Boa
management
Oversee portfolio •
strategy and KPIs
Set objectives,
B
in
R •
c
re
S •
in
t s
im
P
•
Strategy
•
nvestment
Board
n teraction with the
Regular reporting and
ontrol environment
esearch and risk
Supported by strong
nvestment process
ategy by following an r t
mplements the investment
Portfolio Manager
I
Board is
Compe
nvestors
ains attractive
the Company
mpetitive
rges remain
Ongoing
the fees
g:
Impact
Social
Value and
s focused on
etitiveness
Investor
investment objective
p
impact
and positive social
shareholder value
the creation of
Activities centred on •
risk management
Managers including
oversight of
overall strategy and
Responsible for •
d
in
se
C
P
S •
M
ca
M issuance or buybacks
liquidity through share
and the provision of
premium management
Oversee discount/ •
of KPIs
Monitor achievement • B
•
to in
rem
that •
com
Char
and
that •
iscount/premium
ntervention to support
econdary market
Corporate Broker for
Portfolio Manager and
upport from the
Manager
apability of the
Board
Marketing and sales
Promotion
ensurin
management
p
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
26
Section 1: Strategic Report
Investment objective
The Company’s investment objective is to deliver measurable
positive social impact as well as long term capital growth and
income, through investing in a diversi ed portfolio of private
market impact funds (“Impact Funds”), separate accounts
managed by third party asset managers (“Managed Accounts”),
co-investments alongside such funds or other impact investors
(which may include the Portfolio Manager) (“Co-Investments”) and
direct investments (“Direct Investments”), in each case so as to
gain exposure to Social Impact Investments. “Social Impact
Investments” are investments intended to have a positive social
impact on people predominantly in the UK while providing a
nancial return to investors, including, but not limited to, High
Impact Housing, Debt and Equity for Social Enterprises and Social
Outcomes Contracts (as such terms are de ned in the investment
policy below).
Investments will be selected for their ability to contribute towards
the reduction of poverty and inequality as well as addressing
other critical social challenges in the UK.
The Company aims to provide a Net Asset Value total return of
CPI plus 2% per annum (once the portfolio is fully invested and
averaged over a rolling three- to ve- year period, net of fees) with
low correlation to traditional quoted markets while making a
signi cant contribution to addressing social issues in the UK.
The impact of the Company’s investments and how the Portfolio
Manager’s activities contribute towards achieving a positive social
impact will be measured and reported on at least annually.
Investment policy
The Company will invest in a diversi ed portfolio of Impact Funds,
Managed Accounts and Co-Investments, which in turn support
charities and social enterprises, with a focus on helping to
alleviate some of the UK’s most pressing social challenges. The
Company may also make Direct Investments.
Impact themes
The Company and its advisers have identi ed key impact themes
that help to determine which investments are selected and the
sectors which the Company seeks to have a positive impact on.
InIsummary, these impact themes include but are not limited to:
• Reducing poverty and inequality – Providing essential
services to disadvantaged or vulnerable people;
• Good health and well-being – Providing health and care
services and early intervention support to improve health
outcomes for underserved and vulnerable people, and reduce
the strain on the public health system;
• Education, training and decent work – Supporting social
organisations which empower disadvantaged people to
improve educational outcomes and access better training and
employment opportunities; and
• Just transition to net zero – Contributing towards a fair
transition to an environmentally sustainable society by creating
new opportunities to reduce emissions and social inequality at
the same time.
The Company will make Social Impact Investments that seek to
deliver a positive social outcome consistent with one or more of
these or other impact themes together with a nancial return.
Such investments may include, but are not limited to investments
in:
• High Impact Housing – Including property funds that either
acquire or develop high quality aHordable housing, from more
specialist housing for vulnerable groups (for example,
transition accommodation for people who were formerly
homeless or eeing domestic violence) to housing for low
income renters currently living in poor quality or insecure
accommodation.
• Debt and Equity for Social Enterprises – Including charity
bonds, portfolios of secured loans and funds that invest in
established social enterprises via mezzanine debt and/or
equity.
• Social Outcomes Contracts – Contracts between a public
sector or Government body and a delivery organisation
whereby an external investor provides upfront capital to the
delivery organisation and is repaid by the income stream from
the public sector body based upon social outcomes delivered
rather than on a fee for service basis.
The market for Social Impact Investments in the UK is a rapidly
evolving market and the Company retains the exibility to identify
new impact themes and invest in Social Impact Investments other
than those in the categories set out above, subject to the
investment restrictions below.
The Company will typically obtain exposure to Social Impact
Investments through investing in Impact Funds, Managed
Accounts and Co-Investments. The Company will usually make
investments on a commitment basis, expected to be called over
aIperiod of time. The Company will generally hold minority
interests in Impact Funds, but may hold majority interests where
appropriate including, for example, where the Company may be
aIcornerstone investor alongside the Portfolio Manager.
Co-Investments would be made alongside third party impact
investors, including the Portfolio Manager. It is expected that the
Company will invest in Impact Funds and Co-Investments
alongside the Portfolio Manager, bene tting from the broad
range of opportunities sourced by the Portfolio Manager. Direct
Investments are not expected to comprise a material proportion
of the Company’s portfolio.
The portfolio composition will re ect the opportunities available
to the Portfolio Manager, based on the performance, social impact
and maturity of the Impact Funds, Managed Accounts,
Co-Investments and Direct Investments. The Company’s assets
will be managed so that at any time when they are fully invested
and/or committed, at least 70% of the portfolio assets by value
are being managed with a clear and speci c plan to achieve
aImeasurable and positive impact on social issues in the UK.
SuchIimpact will be monitored over the life of the investment
according to an appropriate evidence-based standard. Pending
deployment of cash, monies may be temporarily invested into
Liquidity Assets (as such term is de ned below). For these
purposes, the Company’s assets are considered “fully invested
and/or committed” when the total value of invested assets in, and
undrawn commitments to, Impact Funds, Managed Accounts,
Co-Investments and Direct Investments equals at least 90% of the
Net Asset Value.
The Company’s Theory of Change: investing for
positive social impact
The Company’s Theory of Change sets out how the Company
seeks to tackle an investment gap for entrenched social issues in
the UK, by investing in a diversi ed portfolio of Impact Funds,
Managed Accounts, Co-Investments and Direct Investments to
26
Section 1: Strategic Report
Investment objective
The Company’s investment objective is to deliver measurable
positive social impact as well as long term capital growth and
income, through investing in a diversi ed portfolio of private
market impact funds (“Impact Funds”), separate accounts
managed by third party asset managers (“Managed Accounts”),
co-investments alongside such funds or other impact investors
(which may include the Portfolio Manager) (“Co-Investments”) and
direct investments (“Direct Investments”), in each case so as to
gain exposure to Social Impact Investments. “Social Impact
Investments” are investments intended to have a positive social
impact on people predominantly in the UK while providing a
nancial return to investors, including, but not limited to, High
Impact Housing, Debt and Equity for Social Enterprises and Social
Outcomes Contracts (as such terms are de ned in the investment
policy below).
Investments will be selected for their ability to contribute towards
the reduction of poverty and inequality as well as addressing
other critical social challenges in the UK.
The Company aims to provide a Net Asset Value total return of
CPI plus 2% per annum (once the portfolio is fully invested and
averaged over a rolling three- to ve- year period, net of fees) with
low correlation to traditional quoted markets while making a
signi cant contribution to addressing social issues in the UK.
The impact of the Company’s investments and how the Portfolio
Manager’s activities contribute towards achieving a positive social
impact will be measured and reported on at least annually.
Investment policy
The Company will invest in a diversi ed portfolio of Impact Funds,
Managed Accounts and Co-Investments, which in turn support
charities and social enterprises, with a focus on helping to
alleviate some of the UK’s most pressing social challenges. The
Company may also make Direct Investments.
Impact themes
The Company and its advisers have identi ed key impact themes
that help to determine which investments are selected and the
sectors which the Company seeks to have a positive impact on.
InIsummary, these impact themes include but are not limited to:
• Reducing poverty and inequality – Providing essential
services to disadvantaged or vulnerable people;
• Good health and well-being – Providing health and care
services and early intervention support to improve health
outcomes for underserved and vulnerable people, and reduce
the strain on the public health system;
• Education, training and decent work – Supporting social
organisations which empower disadvantaged people to
improve educational outcomes and access better training and
employment opportunities; and
• Just transition to net zero – Contributing towards a fair
transition to an environmentally sustainable society by creating
new opportunities to reduce emissions and social inequality at
the same time.
The Company will make Social Impact Investments that seek to
deliver a positive social outcome consistent with one or more of
these or other impact themes together with a nancial return.
Such investments may include, but are not limited to investments
in:
• High Impact Housing – Including property funds that either
acquire or develop high quality aHordable housing, from more
specialist housing for vulnerable groups (for example,
transition accommodation for people who were formerly
homeless or eeing domestic violence) to housing for low
income renters currently living in poor quality or insecure
accommodation.
• Debt and Equity for Social Enterprises – Including charity
bonds, portfolios of secured loans and funds that invest in
established social enterprises via mezzanine debt and/or
equity.
• Social Outcomes Contracts – Contracts between a public
sector or Government body and a delivery organisation
whereby an external investor provides upfront capital to the
delivery organisation and is repaid by the income stream from
the public sector body based upon social outcomes delivered
rather than on a fee for service basis.
The market for Social Impact Investments in the UK is a rapidly
evolving market and the Company retains the exibility to identify
new impact themes and invest in Social Impact Investments other
than those in the categories set out above, subject to the
investment restrictions below.
The Company will typically obtain exposure to Social Impact
Investments through investing in Impact Funds, Managed
Accounts and Co-Investments. The Company will usually make
investments on a commitment basis, expected to be called over
aIperiod of time. The Company will generally hold minority
interests in Impact Funds, but may hold majority interests where
appropriate including, for example, where the Company may be
aIcornerstone investor alongside the Portfolio Manager.
Co-Investments would be made alongside third party impact
investors, including the Portfolio Manager. It is expected that the
Company will invest in Impact Funds and Co-Investments
alongside the Portfolio Manager, bene tting from the broad
range of opportunities sourced by the Portfolio Manager. Direct
Investments are not expected to comprise a material proportion
of the Company’s portfolio.
The portfolio composition will re ect the opportunities available
to the Portfolio Manager, based on the performance, social impact
and maturity of the Impact Funds, Managed Accounts,
Co-Investments and Direct Investments. The Company’s assets
will be managed so that at any time when they are fully invested
and/or committed, at least 70% of the portfolio assets by value
are being managed with a clear and speci c plan to achieve
aImeasurable and positive impact on social issues in the UK.
SuchIimpact will be monitored over the life of the investment
according to an appropriate evidence-based standard. Pending
deployment of cash, monies may be temporarily invested into
Liquidity Assets (as such term is de ned below). For these
purposes, the Company’s assets are considered “fully invested
and/or committed” when the total value of invested assets in, and
undrawn commitments to, Impact Funds, Managed Accounts,
Co-Investments and Direct Investments equals at least 90% of the
Net Asset Value.
The Company’s Theory of Change: investing for
positive social impact
The Company’s Theory of Change sets out how the Company
seeks to tackle an investment gap for entrenched social issues in
the UK, by investing in a diversi ed portfolio of Impact Funds,
Managed Accounts, Co-Investments and Direct Investments to
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
27
Section 1: Strategic Report
strengthen and grow impact-focused organisations with strong
track-records, leading to better essential services at scale for
underserved and disadvantaged or vulnerable people in the UK.
The Portfolio Manager integrates the Company’s Theory of
Change at every stage of investment, portfolio management and
engagement to ensure the theory is put into practice.
Key Performance Indicators (KPIs) and impact
management methodology
Impact management and measurement is used to demonstrate
the Company’s Theory of Change and is integrated at every stage
of the Company’s investment process and the Portfolio Manager’s
activities. The Company considers impact at two levels:
• rst, the impact on people in the UK created by the charities
and organisations receiving investment through the fund
managers that the Company invests in; and
• second, the investor contribution of the Company and the
Portfolio Manager in enhancing the impact of fund managers
and investees through investment, engagement and sharing
knowledge with the wider market to support greater adoption
of impact investment.
The Company assesses the level of impact that its investments
into social enterprises and organisations have on people using an
impact management framework developed by Impact Frontiers.
This framework is designed to ensure that investments align with
the social impact mission of the Company and that impact risks
are assessed and managed.
Further, the Portfolio Manager has developed a proprietary
asset-level ‘impact’ compliance framework which is used to
monitor and assess how each of the Company’s investments
contributes to achieving a positive impact in accordance with the
Company’s investment objective and Theory of Change.
Each investment in the Company’s portfolio will be monitored and
measured against the Company’s investment objective and
Theory of Change at least annually.
Performance Monitoring and Valuation
1. Valuation Committee – meets half yearly to
consider and approve for recommendation to the
Board.
2. Performance Committee – meets half yearly to
compare against original investment thesis and
identify any actions required and what lessons
can be drawn.
Idea Generation
Deal Origination
Significant reach in sourcing investments through:
1) Better Society Capital’s strong reputation; 2) support
of existing managers to develop new proposals;
3) actively seek out new managers to develop new
proposals; and 4) maximise the team’s network.
Pre – Due Diligence
Idea is formally tested against investment and
portfolio allocation objectives.
Due Diligence
Investment Approval
Debate and challenge. The deal team submits a
proposal to an investment committee dedicated to
the Company’s portfolio. The proposal focusses on
clarity, testable theses, key performance indicators
and risk.
Deal Structuring and Execution
Transaction structures and documentation
created to mitigate risks identified during due
diligence while maintaining incentives for the
investee. During documentation the deal team
will work with the investee company to agree an
implementation plan. For example an ‘impact
canvas’ is developed and agreed, which is a tool
that summarises the key objectives of the
investment and the resulting KPIs that will be
monitored over the life of the investment.
Exit
Portfolio Management
1. Managing investment performance across
impact on people and financial return.
2. Supporting fund managers and investee companies
development providing structured support where they
face common challenges e.g. impact management.
3. Engaging with fund managers and investee companies
to support delivery of impact.
After working to an exit to best deliver financial and
impact returns the team will reflect on lesson learned
during the life of the investment and prepare a
report for Better Society Capital’s learning database.
Range of proprietary tools used throughout the process,
including management DD, DD toolkits across impact,
financial and operational due diligence, model and
review templates and deal structuring guidelines.
Actively search for new investment opportunities.
Better Society Capital starts with the social issue and
then designs and improves routes to bring together
the needs of enterprises and investors.
Section 1: Strategic Report
strengthen and grow impact-focused organisations with strong
track-records, leading to better essential services at scale for
underserved and disadvantaged or vulnerable people in the UK.
The Portfolio Manager integrates the Company’s Theory of
Change at every stage of investment, portfolio management and
engagement to ensure the theory is put into practice.
Key Performance Indicators (KPIs) and impact
management methodology
Impact management and measurement is used to demonstrate
the Company’s Theory of Change and is integrated at every stage
of the Company’s investment process and the Portfolio Manager’s
activities. The Company considers impact at two levels:
• rst, the impact on people in the UK created by the charities
and organisations receiving investment through the fund
managers that the Company invests in; and
• second, the investor contribution of the Company and the
Portfolio Manager in enhancing the impact of fund managers
and investees through investment, engagement and sharing
knowledge with the wider market to support greater adoption
of impact investment.
The Company assesses the level of impact that its investments
into social enterprises and organisations have on people using an
impact management framework developed by Impact Frontiers.
This framework is designed to ensure that investments align with
the social impact mission of the Company and that impact risks
are assessed and managed.
Further, the Portfolio Manager has developed a proprietary
asset-level ‘impact’ compliance framework which is used to
monitor and assess how each of the Company’s investments
contributes to achieving a positive impact in accordance with the
Company’s investment objective and Theory of Change.
Each investment in the Company’s portfolio will be monitored and
measured against the Company’s investment objective and
Theory of Change at least annually.
Performance Monitoring and Valuation
1. Valuation Committee – meets half yearly to
consider and approve for recommendation to the
Board.
2. Performance Committee – meets half yearly to
compare against original investment thesis and
identify any actions required and what lessons
can be drawn.
Idea Generation
Deal Origination
Significant reach in sourcing investments through:
1) Better Society Capital’s strong reputation; 2) support
of existing managers to develop new proposals;
3) actively seek out new managers to develop new
proposals; and 4) maximise the team’s network.
Pre – Due Diligence
Idea is formally tested against investment and
portfolio allocation objectives.
Due Diligence
Investment Approval
Debate and challenge. The deal team submits a
proposal to an investment committee dedicated to
the Company’s portfolio. The proposal focusses on
clarity, testable theses, key performance indicators
and risk.
Deal Structuring and Execution
Transaction structures and documentation
created to mitigate risks identified during due
diligence while maintaining incentives for the
investee. During documentation the deal team
will work with the investee company to agree an
implementation plan. For example an ‘impact
canvas’ is developed and agreed, which is a tool
that summarises the key objectives of the
investment and the resulting KPIs that will be
monitored over the life of the investment.
Exit
Portfolio Management
1. Managing investment performance across
impact on people and financial return.
2. Supporting fund managers and investee companies
development providing structured support where they
face common challenges e.g. impact management.
3. Engaging with fund managers and investee companies
to support delivery of impact.
After working to an exit to best deliver financial and
impact returns the team will reflect on lesson learned
during the life of the investment and prepare a
report for Better Society Capital’s learning database.
Range of proprietary tools used throughout the process,
including management DD, DD toolkits across impact,
financial and operational due diligence, model and
review templates and deal structuring guidelines.
Actively search for new investment opportunities.
Better Society Capital starts with the social issue and
then designs and improves routes to bring together
the needs of enterprises and investors.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
28
Section 1: Strategic Report
Investment policy
Investment restrictions
The Company will manage its assets with the objective of
spreading risk through the following investment restrictions that
limit the Company’s exposure to not more than:
• 60% of Net Assets in High Impact Housing;
• 60% of Net Assets in Debt and Equity for Social Enterprises, of
which, not more than 30% of Net Assets will be held in equity
interests via funds;
• 40% of Net Assets in Social Outcomes Contracts;
• 30% of Net Assets in Social Impact Investments other than
High Impact Housing, Debt and Equity for Social Enterprises
and Social Outcomes Contracts;
• 10% of Net Assets to a single Investment, held directly or
indirectly on a look-through basis;
• 20%. of Net Assets to any one Impact Fund;
• 25% of Net Assets to Impact Funds and Managed Accounts
managed or advised by the same investment management
and advisory group; and
• 15% of Net Assets to non-UK Investments.
Each of the above restrictions will be calculated at the time of
commitment and where the Company’s exposure will be the
aggregate of the value of the Company’s Investments plus its
outstanding commitments. Where the Company makes an
Investment otherwise than on a commitment basis, the time of
commitment will be the time of investment.
The Company will not be required to dispose of any investment or
to rebalance the portfolio as a result of a change in the respective
valuations of its assets. However, the Portfolio Manager will
regularly monitor the portfolio and may make adjustments from
time to time consistent with the objective of managing portfolio
risk, return and impact. Where the calculation of an investment
restriction requires an analysis of underlying Investments held by
an Impact Fund or Managed Account in which the Company is
invested, such calculation will be based on the information
reasonably available to the Portfolio Manager at the relevant time.
As a result of managing its assets and spreading investment risk
in accordance with the above restrictions, the Company expects
to have diversi ed exposure across its various counterparties and
co-investors.
Hedging and derivatives
The Company will not employ derivatives of any kind for
investment purposes.
Whilst the Company may use derivatives for currency hedging
purposes, non-Sterling exposures are expected to be limited and,
to the extent there are such exposures, the Company currently
anticipates that these will not be hedged.
Borrowing policy
The Company may, from time to time, use borrowings for working
capital and portfolio management purposes, including for the
purpose of satisfying capital calls and the short term funding of
investments. Borrowings will not exceed 20% of the Company’s
Net Assets, calculated at the time of borrowing.
Cash and liquidity management
The Company may hold cash on deposit and may invest in cash
equivalent investments, which may include short-term
investments in money market type funds and tradeable debt
securities. In order to e?ciently allocate the Company’s funds
whilst it may otherwise hold signi cant levels of cash, the
Company may also make short and medium term liquid
investments, including in social bond funds, closed-ended listed
funds and other liquid ESG investments, that the Portfolio
Manager considers are consistent with the Company’s liquidity
requirements, investment policy, investment guidelines and risk
pro le while also meeting high ESG criteria (“Liquidity Assets”).
The Company may invest up to 30% of Net Assets in Liquidity
Assets, measured at the time of investment. The Company
intends to only utilise the full 30% allocation immediately after a
fundraise and at most times no more than 20% of Net Assets shall
be invested in Liquidity Assets.
The Company will seek to ensure the Liquidity Assets target the
Portfolio Manager’s responsible investment policy, which is
underpinned by nine core responsible business principles,
including:
• ‘Do No Harm’ – To minimise negative impacts on target
bene ciaries and communities, the environment, employees,
and all stakeholders.
• ‘Protect the Environment’ – To promote and practice the
e?cient use of natural resources and protect the environment
wherever possible.
• ‘Inclusive Practices’ – To promote equality, diversity and
inclusion practices through good corporate governance and
decision making, employment, organisational culture and
values, and operational delivery.
When identifying key ESG risks, the Portfolio Manager aims to be
proportionately compliant with its responsible investment policy,
based on an assessment of the materiality of the ESG risks and
best practice within the target industry.
The policy is integrated into the Portfolio Manager’s investment
approach. For example, material ESG risks that are identi ed will
be reported to the SBSI Investment Committee when a
recommendation paper is presented for decision.
Co-Investments would be made alongside third party impact
investors, including the Portfolio Manager. It is expected that the
Company will in at least some instances invest in Impact Funds
and Co-Investments alongside the Portfolio Manager, bene tting
from the broad range of opportunities sourced by the Portfolio
Manager. Direct Investments are not expected to comprise
aImaterial proportion of the Company’s portfolio.
The portfolio composition at any one time will re ect the
opportunities available to the Portfolio Manager, based on the
performance, social impact and maturity of the Impact Funds,
Managed Accounts, Co-Investments and Direct Investments.
There may be times when it is appropriate for the Company to
have a signi cant cash or cash equivalent position instead of
being fully or near fully invested, including for the purpose of
seeking to satisfy expected capital calls on commitments to
Impact Funds and to manage the working capital requirements of
the Company.
There is no restriction on the amount of cash or cash equivalent
investments that the Company may hold. Cash and certain cash
equivalents will be held with approved counterparties and in line
with prudent cash management guidelines agreed between the
Board, AIFM and Portfolio Manager.
28
Section 1: Strategic Report
Investment policy
Investment restrictions
The Company will manage its assets with the objective of
spreading risk through the following investment restrictions that
limit the Company’s exposure to not more than:
• 60% of Net Assets in High Impact Housing;
• 60% of Net Assets in Debt and Equity for Social Enterprises, of
which, not more than 30% of Net Assets will be held in equity
interests via funds;
• 40% of Net Assets in Social Outcomes Contracts;
• 30% of Net Assets in Social Impact Investments other than
High Impact Housing, Debt and Equity for Social Enterprises
and Social Outcomes Contracts;
• 10% of Net Assets to a single Investment, held directly or
indirectly on a look-through basis;
• 20%. of Net Assets to any one Impact Fund;
• 25% of Net Assets to Impact Funds and Managed Accounts
managed or advised by the same investment management
and advisory group; and
• 15% of Net Assets to non-UK Investments.
Each of the above restrictions will be calculated at the time of
commitment and where the Company’s exposure will be the
aggregate of the value of the Company’s Investments plus its
outstanding commitments. Where the Company makes an
Investment otherwise than on a commitment basis, the time of
commitment will be the time of investment.
The Company will not be required to dispose of any investment or
to rebalance the portfolio as a result of a change in the respective
valuations of its assets. However, the Portfolio Manager will
regularly monitor the portfolio and may make adjustments from
time to time consistent with the objective of managing portfolio
risk, return and impact. Where the calculation of an investment
restriction requires an analysis of underlying Investments held by
an Impact Fund or Managed Account in which the Company is
invested, such calculation will be based on the information
reasonably available to the Portfolio Manager at the relevant time.
As a result of managing its assets and spreading investment risk
in accordance with the above restrictions, the Company expects
to have diversi ed exposure across its various counterparties and
co-investors.
Hedging and derivatives
The Company will not employ derivatives of any kind for
investment purposes.
Whilst the Company may use derivatives for currency hedging
purposes, non-Sterling exposures are expected to be limited and,
to the extent there are such exposures, the Company currently
anticipates that these will not be hedged.
Borrowing policy
The Company may, from time to time, use borrowings for working
capital and portfolio management purposes, including for the
purpose of satisfying capital calls and the short term funding of
investments. Borrowings will not exceed 20% of the Company’s
Net Assets, calculated at the time of borrowing.
Cash and liquidity management
The Company may hold cash on deposit and may invest in cash
equivalent investments, which may include short-term
investments in money market type funds and tradeable debt
securities. In order to e?ciently allocate the Company’s funds
whilst it may otherwise hold signi cant levels of cash, the
Company may also make short and medium term liquid
investments, including in social bond funds, closed-ended listed
funds and other liquid ESG investments, that the Portfolio
Manager considers are consistent with the Company’s liquidity
requirements, investment policy, investment guidelines and risk
pro le while also meeting high ESG criteria (“Liquidity Assets”).
The Company may invest up to 30% of Net Assets in Liquidity
Assets, measured at the time of investment. The Company
intends to only utilise the full 30% allocation immediately after a
fundraise and at most times no more than 20% of Net Assets shall
be invested in Liquidity Assets.
The Company will seek to ensure the Liquidity Assets target the
Portfolio Manager’s responsible investment policy, which is
underpinned by nine core responsible business principles,
including:
• ‘Do No Harm’ – To minimise negative impacts on target
bene ciaries and communities, the environment, employees,
and all stakeholders.
• ‘Protect the Environment’ – To promote and practice the
e?cient use of natural resources and protect the environment
wherever possible.
• ‘Inclusive Practices’ – To promote equality, diversity and
inclusion practices through good corporate governance and
decision making, employment, organisational culture and
values, and operational delivery.
When identifying key ESG risks, the Portfolio Manager aims to be
proportionately compliant with its responsible investment policy,
based on an assessment of the materiality of the ESG risks and
best practice within the target industry.
The policy is integrated into the Portfolio Manager’s investment
approach. For example, material ESG risks that are identi ed will
be reported to the SBSI Investment Committee when a
recommendation paper is presented for decision.
Co-Investments would be made alongside third party impact
investors, including the Portfolio Manager. It is expected that the
Company will in at least some instances invest in Impact Funds
and Co-Investments alongside the Portfolio Manager, bene tting
from the broad range of opportunities sourced by the Portfolio
Manager. Direct Investments are not expected to comprise
aImaterial proportion of the Company’s portfolio.
The portfolio composition at any one time will re ect the
opportunities available to the Portfolio Manager, based on the
performance, social impact and maturity of the Impact Funds,
Managed Accounts, Co-Investments and Direct Investments.
There may be times when it is appropriate for the Company to
have a signi cant cash or cash equivalent position instead of
being fully or near fully invested, including for the purpose of
seeking to satisfy expected capital calls on commitments to
Impact Funds and to manage the working capital requirements of
the Company.
There is no restriction on the amount of cash or cash equivalent
investments that the Company may hold. Cash and certain cash
equivalents will be held with approved counterparties and in line
with prudent cash management guidelines agreed between the
Board, AIFM and Portfolio Manager.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
29
Section 1: Strategic Report
Changes to the investment policy
No material change will be made to the investment policy without
the approval of Shareholders by ordinary resolution. Non-material
changes to the investment policy may be approved by the Board.
In the event of a breach of the investment policy set out above
and the investment and gearing restrictions set out therein, the
Portfolio Manager shall inform the AIFM and the Board upon
becoming aware of the same and if the AIFM and/or the Board
considers the breach to be material, noti cation will be made to a
Regulatory Information Service.
Promotion and shareholder relations
The Company promotes its shares to a broad range of investors
who have the potential to be long-term supporters of the
investment strategy. The Company seeks to achieve this through
its Manager and corporate broker, which promote the shares of
the Company through regular contact with both current and
potential shareholders.
Promotion is focused via two channels:
– Discretionary fund managers. The Manager promotes the
Company via both London and regional sales teams.
– Retail end investors. The Company promotes its shares via
engaging with platforms, via the press, and through its
webpages.
These activities consist of investor meetings, one-on-one
meetings, regional road shows and attendance at conferences for
professional investors. In addition, the Company’s shares are
supported by the Manager’s wider marketing of investment
companies targeted at all types of investors. This includes
maintaining close relationships with advisers and execution-only
platforms, advertising in the trade press, maintaining
relationships with nancial journalists and the provision of digital
information on Schroders’ website. The Board also seeks active
engagement with investors, and meetings with the Chair are
oHered to professional investors where appropriate. Shareholders
are also encouraged to sign up to the Manager’s Investment
Trusts update, to receive information on the Company directly.
Details of the Board’s approach to discount management and
share issuance may be found in the AGM Recommendations on
page 82.
Shareholder relations are given high priority by both the Board
and the Manager. In addition to the engagement and meetings
held during the year described on page 45, the chairs of the
Board and committees and the other directors, usually attend the
AGM and are available to respond to queries and concerns from
shareholders. The Board is keen to hear from shareholders and
can do so by writing to the Company Secretary (Company
Secretary, Schroder BSC Social Impact Trust plc, 1 London Wall
Place, London EC2Y 5AU), or emailing
amcompanysecretary@schroders.com.
Key performance indicators (KPIs)
The Board measures the development and success of the
Company’s business through the achievement of the Company’s
investment objective. Comments on performance against the
investment objective can be found under Key Performance
Indicators, in the Chair’s Statement and in the Portfolio Manager’s
Report.
Ongoing charges
The Board continues to review the Company’s Ongoing Charges
to ensure that the total costs incurred by shareholders in the
running of the Company remain fair and competitive when
measured against peer group funds and other market factors.
AnIanalysis of the Company’s costs, including management fees,
directors’ fees and general expenses, is submitted to each
quarterly Board meeting. Management fees are reviewed at least
annually. Costs incurred within the Company’s investments are
not included in the Company’s ongoing charges.
Section 1: Strategic Report
Changes to the investment policy
No material change will be made to the investment policy without
the approval of Shareholders by ordinary resolution. Non-material
changes to the investment policy may be approved by the Board.
In the event of a breach of the investment policy set out above
and the investment and gearing restrictions set out therein, the
Portfolio Manager shall inform the AIFM and the Board upon
becoming aware of the same and if the AIFM and/or the Board
considers the breach to be material, noti cation will be made to a
Regulatory Information Service.
Promotion and shareholder relations
The Company promotes its shares to a broad range of investors
who have the potential to be long-term supporters of the
investment strategy. The Company seeks to achieve this through
its Manager and corporate broker, which promote the shares of
the Company through regular contact with both current and
potential shareholders.
Promotion is focused via two channels:
– Discretionary fund managers. The Manager promotes the
Company via both London and regional sales teams.
– Retail end investors. The Company promotes its shares via
engaging with platforms, via the press, and through its
webpages.
These activities consist of investor meetings, one-on-one
meetings, regional road shows and attendance at conferences for
professional investors. In addition, the Company’s shares are
supported by the Manager’s wider marketing of investment
companies targeted at all types of investors. This includes
maintaining close relationships with advisers and execution-only
platforms, advertising in the trade press, maintaining
relationships with nancial journalists and the provision of digital
information on Schroders’ website. The Board also seeks active
engagement with investors, and meetings with the Chair are
oHered to professional investors where appropriate. Shareholders
are also encouraged to sign up to the Manager’s Investment
Trusts update, to receive information on the Company directly.
Details of the Board’s approach to discount management and
share issuance may be found in the AGM Recommendations on
page 82.
Shareholder relations are given high priority by both the Board
and the Manager. In addition to the engagement and meetings
held during the year described on page 45, the chairs of the
Board and committees and the other directors, usually attend the
AGM and are available to respond to queries and concerns from
shareholders. The Board is keen to hear from shareholders and
can do so by writing to the Company Secretary (Company
Secretary, Schroder BSC Social Impact Trust plc, 1 London Wall
Place, London EC2Y 5AU), or emailing
amcompanysecretary@schroders.com.
Key performance indicators (KPIs)
The Board measures the development and success of the
Company’s business through the achievement of the Company’s
investment objective. Comments on performance against the
investment objective can be found under Key Performance
Indicators, in the Chair’s Statement and in the Portfolio Manager’s
Report.
Ongoing charges
The Board continues to review the Company’s Ongoing Charges
to ensure that the total costs incurred by shareholders in the
running of the Company remain fair and competitive when
measured against peer group funds and other market factors.
AnIanalysis of the Company’s costs, including management fees,
directors’ fees and general expenses, is submitted to each
quarterly Board meeting. Management fees are reviewed at least
annually. Costs incurred within the Company’s investments are
not included in the Company’s ongoing charges.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
30
Section 1: Strategic Report
Corporate and social responsibility
The Board recognises the Company’s responsibilities with respect
to corporate and social responsibility (including with respect to
human rights) and engages with its outsourced service providers
to safeguard the Company’s interests. As part of this ongoing
monitoring, the Board receives reporting from its service
providers with respect to their anti-modern slavery statements,
anti-bribery commitment, greenhouse gas reporting, net zero
carbon targets, diversity and inclusion, and whistleblowing
policies and arrangements.
Further disclosures
EDI policy
The Board has adopted an EDI policy which seeks to promote
diversity of skills, backgrounds and personal strengths. The Board
recognises that its debates and decision-making are greatly
enriched by a wider range of perspectives and thinking.
The Board will encourage any recruitment agencies it engages to
nd a range of candidates that meet the objective criteria agreed
for each appointment. Appointments will always be based on merit
and objective criteria, and within this context, promote diversity
inclusion and equal opportunity. Candidates for Board vacancies
are selected based on their skills and experience, which are
matched against the balance of skills and experience of the overall
Board taking into account the criteria for the role being oHered.
Implementation of EDI policy
The Board has adopted the targets set out in the UK Listing Rules
in relation to diversity which requires that:
(i) at least 40% of individuals on the Board are women;
(ii) at least one of the senior Board positions is held by a woman;
and
(iii) at least one individual on the Board is from a minority ethnic
background.
As an investment trust with no executive o?cers and no senior
independent director, the Board has re ected the senior position
of the Chair in its diversity tables below.
The Board has chosen to align its diversity reporting reference
date with the Company’s nancial year end and proposes to
maintain this alignment for future reporting periods.
The Company has met all of the targets as at its chosen reference
date, 30 June 2025, and at the date of this report.
The data as at 30 June 2025 is set out in the tables below.
The tables below set out the gender and ethnic diversity composition of the Board as at 30 June 2025 and at the date of this report.
Number
Number of Percentage of senior
Board of the positions on UK Listing
members Board the Board Rules Target
Men 1 25% 0
Women 3 75% 1
Number
Number of Percentage of senior
Board of the positions on UK Listing
members Board the Board Rules Target
White British or other White (including 3 75% 1
minority-white groups)
Mixed/Multiple Ethnic Groups 0 0% 0
Asian/Asian British 1 25% 0
Black/African/Caribbean/Black British 0 0% 0
Other ethnic group, including Arab 0 0% 0
Not speci ed/prefer not to say 0 0% 0
Given that the Company is an investment trust with no executive Board members, the columns and references regarding executive
management have not been included in the above table.
Financial crime policy
The Company continues to be committed to carrying out its
business fairly, honestly and openly and operates a nancial crime
policy (available on the Company’s website), covering bribery and
corruption, tax evasion, money laundering, terrorist nancing and
sanctions, as well as seeking con rmations that the Company’s
service providers’ policies are operating soundly.
Modern Slavery Act 2015
As an investment trust, the Company does not provide goods or
services in the normal course of business and does not have
customers. Accordingly, the directors consider that the Company is
not required to make any slavery or human tra?cking statement
under the Modern Slavery Act 2015.
Greenhouse gas emissions and energy usage
The Company quali es as a low energy user and is exempt from
reporting under the Streamlined Energy & Carbon Reporting
requirements. It has no signi cant greenhouse gas emissions,
energy consumption or energy e?ciency action to report.
Responsible investment
The Company delegates to its Portfolio Manager the responsibility
for taking ESG issues into account when assessing the selection,
retention and realisation of investments. The Board expects the
Portfolio Manager to engage with investee companies on social,
environmental and governance issues and to promote best
practice. Further details are included on page 24 in this Strategic
Report.
Women should make
up at least 40% of the
Board and hold at
least one of the senior
positions
At least one member
of the Board should
be from an ethnic
minority background
excluding white
ethnic groups (as set
out in categories used
by the O?ce for
National Statistics)
30
Section 1: Strategic Report
Corporate and social responsibility
The Board recognises the Company’s responsibilities with respect
to corporate and social responsibility (including with respect to
human rights) and engages with its outsourced service providers
to safeguard the Company’s interests. As part of this ongoing
monitoring, the Board receives reporting from its service
providers with respect to their anti-modern slavery statements,
anti-bribery commitment, greenhouse gas reporting, net zero
carbon targets, diversity and inclusion, and whistleblowing
policies and arrangements.
Further disclosures
EDI policy
The Board has adopted an EDI policy which seeks to promote
diversity of skills, backgrounds and personal strengths. The Board
recognises that its debates and decision-making are greatly
enriched by a wider range of perspectives and thinking.
The Board will encourage any recruitment agencies it engages to
nd a range of candidates that meet the objective criteria agreed
for each appointment. Appointments will always be based on merit
and objective criteria, and within this context, promote diversity
inclusion and equal opportunity. Candidates for Board vacancies
are selected based on their skills and experience, which are
matched against the balance of skills and experience of the overall
Board taking into account the criteria for the role being oHered.
Implementation of EDI policy
The Board has adopted the targets set out in the UK Listing Rules
in relation to diversity which requires that:
(i) at least 40% of individuals on the Board are women;
(ii) at least one of the senior Board positions is held by a woman;
and
(iii) at least one individual on the Board is from a minority ethnic
background.
As an investment trust with no executive o?cers and no senior
independent director, the Board has re ected the senior position
of the Chair in its diversity tables below.
The Board has chosen to align its diversity reporting reference
date with the Company’s nancial year end and proposes to
maintain this alignment for future reporting periods.
The Company has met all of the targets as at its chosen reference
date, 30 June 2025, and at the date of this report.
The data as at 30 June 2025 is set out in the tables below.
The tables below set out the gender and ethnic diversity composition of the Board as at 30 June 2025 and at the date of this report.
Number
Number of Percentage of senior
Board of the positions on UK Listing
members Board the Board Rules Target
Men 1 25% 0
Women 3 75% 1
Number
Number of Percentage of senior
Board of the positions on UK Listing
members Board the Board Rules Target
White British or other White (including 3 75% 1
minority-white groups)
Mixed/Multiple Ethnic Groups 0 0% 0
Asian/Asian British 1 25% 0
Black/African/Caribbean/Black British 0 0% 0
Other ethnic group, including Arab 0 0% 0
Not speci ed/prefer not to say 0 0% 0
Given that the Company is an investment trust with no executive Board members, the columns and references regarding executive
management have not been included in the above table.
Financial crime policy
The Company continues to be committed to carrying out its
business fairly, honestly and openly and operates a nancial crime
policy (available on the Company’s website), covering bribery and
corruption, tax evasion, money laundering, terrorist nancing and
sanctions, as well as seeking con rmations that the Company’s
service providers’ policies are operating soundly.
Modern Slavery Act 2015
As an investment trust, the Company does not provide goods or
services in the normal course of business and does not have
customers. Accordingly, the directors consider that the Company is
not required to make any slavery or human tra?cking statement
under the Modern Slavery Act 2015.
Greenhouse gas emissions and energy usage
The Company quali es as a low energy user and is exempt from
reporting under the Streamlined Energy & Carbon Reporting
requirements. It has no signi cant greenhouse gas emissions,
energy consumption or energy e?ciency action to report.
Responsible investment
The Company delegates to its Portfolio Manager the responsibility
for taking ESG issues into account when assessing the selection,
retention and realisation of investments. The Board expects the
Portfolio Manager to engage with investee companies on social,
environmental and governance issues and to promote best
practice. Further details are included on page 24 in this Strategic
Report.
Women should make
up at least 40% of the
Board and hold at
least one of the senior
positions
At least one member
of the Board should
be from an ethnic
minority background
excluding white
ethnic groups (as set
out in categories used
by the O?ce for
National Statistics)
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
31
Section 1: Strategic Report
Stakeholder Engagement – Section 172 Report
As an externally managed investment trust, the Company has no
employees, operations or premises. The Board has identi ed its
key stakeholders as the Company’s shareholders, the Manager
and the Portfolio Manager, other service providers and the
investee companies/social impact managers.
The following disclosure explains how the directors have engaged
with stakeholders, how stakeholders’ needs have been taken into
account, the outcome of this engagement and the impact that it
has had on the Board’s decisions. Key activities undertaken during
the reporting year are also outlined.
Shareholders
Manager and Portfolio Manager
The Board’s main working relationships are with the Manager and the Portfolio Manager. The Manager is responsible for providing
administrative, company secretarial, accounting and marketing services to the Company. Together with the Company, the Manager has
appointed the Portfolio Manager to perform portfolio management and related services in respect of the Company’s portfolio.
The Board maintains a constructive and collaborative relationship with the Manager and Portfolio Manager, encouraging open
discussion.
The Board invites the Portfolio Manager to attend all Board and certain committee meetings and receives regular reports on the
performance of the portfolio and the implementation of the investment strategy, policy and objective. The portfolio activities
The Board recognises the importance of engaging with shareholders on a regular basis in order to maintain a high level of
transparency and accountability. The Board receives regular reports from the Manager and broker on shareholder engagement, and
the Manager and Portfolio Manager maintain regular and open dialogue with shareholders. The Manager also has a dedicated client
services team which maintains regular contact with the Company’s shareholders and reports regularly to the Board.
Shareholders can also contact the Chair and directors throughout the year via the Company Secretary or the Corporate Broker. The
Chair is also available to meet major shareholders to understand their views and to help inform the Board’s decision making process.
During the year under review a number of meetings and correspondence of this nature took place.
The Company maintains a website from which copies of the annual and half year reports along with factsheets and other relevant
materials are available. Shareholders are also invited to attend the AGM at which they have the opportunity to speak directly with the
directors and Portfolio Manager.
The Board is responsible for formulating the strategy to manage the discount or premium at which the Company’s shares trade to NAV.
The strategy is designed to contain discount volatility, provide liquidity to the market and enhance returns to shareholders.
As noted in the Chair’s Statement, post year end in July 2025, the Board announced its decision to conduct a shareholder consultation
process and strategic review. The strategic review is ongoing and the Board will communicate an update to the market at or before the
Company’s AGM in December 2025.
The directors are required to include in the annual report a statement which describes how
they have discharged their duties under Section 172 of the Companies Act 2006 in
promoting the success of the Company for the benefit of its members as a whole having
regard to certain matters. This includes the likely consequences of the decisions in the
longer term and how wider stakeholders’ needs have been taken into account.
Section 1: Strategic Report
Stakeholder Engagement – Section 172 Report
As an externally managed investment trust, the Company has no
employees, operations or premises. The Board has identi ed its
key stakeholders as the Company’s shareholders, the Manager
and the Portfolio Manager, other service providers and the
investee companies/social impact managers.
The following disclosure explains how the directors have engaged
with stakeholders, how stakeholders’ needs have been taken into
account, the outcome of this engagement and the impact that it
has had on the Board’s decisions. Key activities undertaken during
the reporting year are also outlined.
Shareholders
Manager and Portfolio Manager
The Board’s main working relationships are with the Manager and the Portfolio Manager. The Manager is responsible for providing
administrative, company secretarial, accounting and marketing services to the Company. Together with the Company, the Manager has
appointed the Portfolio Manager to perform portfolio management and related services in respect of the Company’s portfolio.
The Board maintains a constructive and collaborative relationship with the Manager and Portfolio Manager, encouraging open
discussion.
The Board invites the Portfolio Manager to attend all Board and certain committee meetings and receives regular reports on the
performance of the portfolio and the implementation of the investment strategy, policy and objective. The portfolio activities
The Board recognises the importance of engaging with shareholders on a regular basis in order to maintain a high level of
transparency and accountability. The Board receives regular reports from the Manager and broker on shareholder engagement, and
the Manager and Portfolio Manager maintain regular and open dialogue with shareholders. The Manager also has a dedicated client
services team which maintains regular contact with the Company’s shareholders and reports regularly to the Board.
Shareholders can also contact the Chair and directors throughout the year via the Company Secretary or the Corporate Broker. The
Chair is also available to meet major shareholders to understand their views and to help inform the Board’s decision making process.
During the year under review a number of meetings and correspondence of this nature took place.
The Company maintains a website from which copies of the annual and half year reports along with factsheets and other relevant
materials are available. Shareholders are also invited to attend the AGM at which they have the opportunity to speak directly with the
directors and Portfolio Manager.
The Board is responsible for formulating the strategy to manage the discount or premium at which the Company’s shares trade to NAV.
The strategy is designed to contain discount volatility, provide liquidity to the market and enhance returns to shareholders.
As noted in the Chair’s Statement, post year end in July 2025, the Board announced its decision to conduct a shareholder consultation
process and strategic review. The strategic review is ongoing and the Board will communicate an update to the market at or before the
Company’s AGM in December 2025.
The directors are required to include in the annual report a statement which describes how
they have discharged their duties under Section 172 of the Companies Act 2006 in
promoting the success of the Company for the benefit of its members as a whole having
regard to certain matters. This includes the likely consequences of the decisions in the
longer term and how wider stakeholders’ needs have been taken into account.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
32
Section 1: Strategic Report
undertaken by the Portfolio Manager and the impact of decisions aHecting investment performance are set out in the Portfolio
Manager’s Review on pages 12 to 21.
The Management Engagement Committee reviews the performance of the Manager and Portfolio Manager, their remuneration and the
discharge of their contractual obligations at least annually.
Other service providers
Investee companies/social impact managers
Please refer to the Theory of Change on pages 8 to 9 and the Company’s 2025 Impact Report regarding the impact of the Company’s
operations on the community and the environment.
The 2025 Impact Report is available at: http://schro.link/impactreport2025.
Examples of stakeholder consideration during the year
The directors were particularly mindful of stakeholder considerations in reaching the following key decisions in relation to the year
ended 30IJune 2025, accordingly:
• the Board has declared an interim dividend made up wholly of an interest distribution of 3.76p per ordinary share (2024: 2.94p) to be
paid on 19IDecember 2025 to shareholders on the register as at 14 November 2025;
• the Company continued to buy back a limited number of shares with the aim of managing the discount at which the shares were
trading to NAV, with a continued focus on sales and marketing eHorts;
• the Chair has actively engaged with current and prospective shareholders who may have a desire, or mandate, to allocate or further
allocate to social impact;
• webinars and forums have been held to educate and inform investors; and
• the adoption of the SDR “Sustainability Impact” label.
Shortly following the year ended 30 June 2025, the Board launched a shareholder consultation to obtain shareholders’ views on the
strategic options available to the Company and, as noted in the Chair’s Statement, will provide an update at or before the Company’s
AGM on 17 December 2025.
The Board recognises the importance of good stewardship and communication with investee companies/social impact managers to
whom assets are allocated in meeting the Company’s investment objective and strategy. The Portfolio Management team conducts
face-to-face and/or virtual meetings with fund managers and the management teams of organisations where the Company has
invested directly to understand current trading and prospects for their funds and businesses, and to ensure that their ESG investment
principles and approach are understood.
The Portfolio Manager, where available, has representatives in governance bodies of investee companies (such as Board seats, voting
or observer roles in investment committees, or representation in Advisory Committees). The Portfolio Manager reports to the Board on
stewardship issues and the Board will question the rationale for decisions made. Through engagement and exercising governance
rights, the Portfolio Manager actively works with companies to improve corporate standards, transparency and accountability.
The Board maintains regular contact with its key service providers, both at Board and committee meetings, and through ad hoc
communication during the year. The need to foster business relationships with key service providers is central to the directors’
decision-making as the Board of an externally managed investment trust.
During the year, the Management Engagement Committee undertook reviews of the third-party service providers and agreed that their
continued appointment remained in the best interests of the Company and its Shareholders. Directors attended a meeting during the
year to assess the internal controls of certain service providers including the Company’s Depositary HSBC Bank, the registrar, Equiniti
and Schroder’s Group Internal Audit. These meetings enable the Board to conduct due diligence on operations and IT risks amongst
service providers; and to receive up to date information on changes to regulation and market practice in the industry.
32
Section 1: Strategic Report
undertaken by the Portfolio Manager and the impact of decisions aHecting investment performance are set out in the Portfolio
Manager’s Review on pages 12 to 21.
The Management Engagement Committee reviews the performance of the Manager and Portfolio Manager, their remuneration and the
discharge of their contractual obligations at least annually.
Other service providers
Investee companies/social impact managers
Please refer to the Theory of Change on pages 8 to 9 and the Company’s 2025 Impact Report regarding the impact of the Company’s
operations on the community and the environment.
The 2025 Impact Report is available at: http://schro.link/impactreport2025.
Examples of stakeholder consideration during the year
The directors were particularly mindful of stakeholder considerations in reaching the following key decisions in relation to the year
ended 30IJune 2025, accordingly:
• the Board has declared an interim dividend made up wholly of an interest distribution of 3.76p per ordinary share (2024: 2.94p) to be
paid on 19IDecember 2025 to shareholders on the register as at 14 November 2025;
• the Company continued to buy back a limited number of shares with the aim of managing the discount at which the shares were
trading to NAV, with a continued focus on sales and marketing eHorts;
• the Chair has actively engaged with current and prospective shareholders who may have a desire, or mandate, to allocate or further
allocate to social impact;
• webinars and forums have been held to educate and inform investors; and
• the adoption of the SDR “Sustainability Impact” label.
Shortly following the year ended 30 June 2025, the Board launched a shareholder consultation to obtain shareholders’ views on the
strategic options available to the Company and, as noted in the Chair’s Statement, will provide an update at or before the Company’s
AGM on 17 December 2025.
The Board recognises the importance of good stewardship and communication with investee companies/social impact managers to
whom assets are allocated in meeting the Company’s investment objective and strategy. The Portfolio Management team conducts
face-to-face and/or virtual meetings with fund managers and the management teams of organisations where the Company has
invested directly to understand current trading and prospects for their funds and businesses, and to ensure that their ESG investment
principles and approach are understood.
The Portfolio Manager, where available, has representatives in governance bodies of investee companies (such as Board seats, voting
or observer roles in investment committees, or representation in Advisory Committees). The Portfolio Manager reports to the Board on
stewardship issues and the Board will question the rationale for decisions made. Through engagement and exercising governance
rights, the Portfolio Manager actively works with companies to improve corporate standards, transparency and accountability.
The Board maintains regular contact with its key service providers, both at Board and committee meetings, and through ad hoc
communication during the year. The need to foster business relationships with key service providers is central to the directors’
decision-making as the Board of an externally managed investment trust.
During the year, the Management Engagement Committee undertook reviews of the third-party service providers and agreed that their
continued appointment remained in the best interests of the Company and its Shareholders. Directors attended a meeting during the
year to assess the internal controls of certain service providers including the Company’s Depositary HSBC Bank, the registrar, Equiniti
and Schroder’s Group Internal Audit. These meetings enable the Board to conduct due diligence on operations and IT risks amongst
service providers; and to receive up to date information on changes to regulation and market practice in the industry.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
33
Section 1: Strategic Report
Principal Risks and Uncertainties
This framework assists the Audit and Risk
Committee in determining the nature and
extent of the risks it is willing to take in
achieving the Company’s strategic
objectives. Both principal and emerging
risks and the monitoring system are
subject to regular review.
During the year, the Audit and Risk
Committee discussed and monitored a
number of risks which could potentially
impact the Company’s ability to meet its
strategic objectives. Directors monitored
and discussed with the Manager, the
Portfolio Manager and the Company
Secretary emerging risks that could aHect
the Company. No emerging risks were
identi ed.
Although the Board believes that it has a
robust framework of internal control in
place this can provide only reasonable, and
not absolute, assurance against material
nancial misstatement or loss and is
designed to manage, not eliminate, risk.
Actions taken by the Board and, where
appropriate, its committees, to manage
and mitigate the Company’s principal risks
and uncertainties are set out in the table
below. Both the principal and emerging
risks and uncertainties and the monitoring
framework are subject to robust
assessment bi-annually or more frequently
as required. The most recent assessment
took place in October 2025. The Audit and
Risk Committee concluded that the
Company’s risk management and internal
control systems remain eHective with no
signi cant control failings or weaknesses
identi ed. Further details of how the Audit
and Risk Committee has reviewed the
Company’s risk management and internal
control framework can be found on the
next page and in the Audit and Risk
Committee Report on pages 46 to 49.
The principal risks are set out below. Policy
risk has been assessed separately
compared to the prior year where it was
disclosed as part of the economic, policy,
and market risk.
The “Change” column in the table below
highlights the Audit and Risk Committee’s
assessment of any increases or decreases
in risk compared to the prior nancial year
after mitigation and management. The
arrows show the risks as increased or
decreased, and sideway arrows show risks
as stable compared to the prior nancial
year.
The Board, through its delegation to the Audit and Risk Committee, is responsible for the
Company’s framework of risk management and internal control and for reviewing its
effectiveness. The Audit and Risk Committee has adopted a detailed matrix of principal risks
affecting the Company’s business as an investment trust and has established associated
policies and processes designed to manage and, where possible, mitigate those risks, which are
monitored by the Audit and Risk Committee on an ongoing basis.
Principal risk Mitigation and management Change
Strategic risk
Investment objective is out of line with
the requirements of investors or
demand for the shares is not as great as
the supply leading to a persistently large
discount to NAV.
The appropriateness of the Company’s investment remit is regularly reviewed and the
success of the Company in meeting its stated objectives is monitored.
Market feedback and share price information is monitored and the Board has
implemented a buyback programme to manage the discount and provide liquidity. The
long term strategic aim of the Company is to grow its shareholder base and improve
liquidity. However, whilst the shares trade at a discount to NAV, new shares cannot be
issued.
The Board encourages shareholder contact and meetings are oHered after the issue of
results. In addition, the Manager, Portfolio Manager and Board continue to maintain an
open and constructive dialogue with shareholders.
The Board actively supports continued marketing and promotional activities. Such
activities are the result of a collaboration of the Board and the Company’s Manager as
well as the Portfolio Manager. A target list of potential shareholders is monitored and
updated.
The Board monitors the Company’s share price relative to its NAV and will buy back
shares when the Company’s shares trades at a discount. The Board has been active in
using the buyback authority given by shareholders.
In response to the Company’s entrenched share price discount, the Board has initiated a
strategic review to consider potential options for the Company’s future, with an update to
be provided at or before the Company’s AGM on 17 December 2025.
Section 1: Strategic Report
Principal Risks and Uncertainties
This framework assists the Audit and Risk
Committee in determining the nature and
extent of the risks it is willing to take in
achieving the Company’s strategic
objectives. Both principal and emerging
risks and the monitoring system are
subject to regular review.
During the year, the Audit and Risk
Committee discussed and monitored a
number of risks which could potentially
impact the Company’s ability to meet its
strategic objectives. Directors monitored
and discussed with the Manager, the
Portfolio Manager and the Company
Secretary emerging risks that could aHect
the Company. No emerging risks were
identi ed.
Although the Board believes that it has a
robust framework of internal control in
place this can provide only reasonable, and
not absolute, assurance against material
nancial misstatement or loss and is
designed to manage, not eliminate, risk.
Actions taken by the Board and, where
appropriate, its committees, to manage
and mitigate the Company’s principal risks
and uncertainties are set out in the table
below. Both the principal and emerging
risks and uncertainties and the monitoring
framework are subject to robust
assessment bi-annually or more frequently
as required. The most recent assessment
took place in October 2025. The Audit and
Risk Committee concluded that the
Company’s risk management and internal
control systems remain eHective with no
signi cant control failings or weaknesses
identi ed. Further details of how the Audit
and Risk Committee has reviewed the
Company’s risk management and internal
control framework can be found on the
next page and in the Audit and Risk
Committee Report on pages 46 to 49.
The principal risks are set out below. Policy
risk has been assessed separately
compared to the prior year where it was
disclosed as part of the economic, policy,
and market risk.
The “Change” column in the table below
highlights the Audit and Risk Committee’s
assessment of any increases or decreases
in risk compared to the prior nancial year
after mitigation and management. The
arrows show the risks as increased or
decreased, and sideway arrows show risks
as stable compared to the prior nancial
year.
The Board, through its delegation to the Audit and Risk Committee, is responsible for the
Company’s framework of risk management and internal control and for reviewing its
effectiveness. The Audit and Risk Committee has adopted a detailed matrix of principal risks
affecting the Company’s business as an investment trust and has established associated
policies and processes designed to manage and, where possible, mitigate those risks, which are
monitored by the Audit and Risk Committee on an ongoing basis.
Principal risk Mitigation and management Change
Strategic risk
Investment objective is out of line with
the requirements of investors or
demand for the shares is not as great as
the supply leading to a persistently large
discount to NAV.
The appropriateness of the Company’s investment remit is regularly reviewed and the
success of the Company in meeting its stated objectives is monitored.
Market feedback and share price information is monitored and the Board has
implemented a buyback programme to manage the discount and provide liquidity. The
long term strategic aim of the Company is to grow its shareholder base and improve
liquidity. However, whilst the shares trade at a discount to NAV, new shares cannot be
issued.
The Board encourages shareholder contact and meetings are oHered after the issue of
results. In addition, the Manager, Portfolio Manager and Board continue to maintain an
open and constructive dialogue with shareholders.
The Board actively supports continued marketing and promotional activities. Such
activities are the result of a collaboration of the Board and the Company’s Manager as
well as the Portfolio Manager. A target list of potential shareholders is monitored and
updated.
The Board monitors the Company’s share price relative to its NAV and will buy back
shares when the Company’s shares trades at a discount. The Board has been active in
using the buyback authority given by shareholders.
In response to the Company’s entrenched share price discount, the Board has initiated a
strategic review to consider potential options for the Company’s future, with an update to
be provided at or before the Company’s AGM on 17 December 2025.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
34
Section 1: Strategic Report
Principal risk Mitigation and management Change
Continuity risk
Investment management risks
The Board monitors investment performance, investment risk and portfolio activity at
each quarterly meeting.
The AIFM and Portfolio Manager are subject to anIannual review of their suitability as
conducted by the Management Engagement Committee.
The Portfolio Manager has extensive experience in selecting private Social Impact
Investments and has aIrobust investment process.
The Portfolio Manager makes investments according to aItested and robust process and
based on the goal of achieving the target return. A pipeline of opportunities isIvetted and
reviewed, and signi cant care is taken in selecting high-quality investments. The Portfolio
Manager receives regular management information and engages regularly with
investees to monitor and ensure performance to plan.
If performance is unsatisfactory over a prolonged period the Board may seek to replace
the AIFM and/or the Portfolio Manager.
Performance in the period was below the Company’s stated return target due to di?cult
market conditions and some of the funds still being in their investment periods. The
Portfolio Manager anticipates improving performance as assets mature, and has already
seen income generation above expectations.
Poor investment performance against
objective.
Given the average discount of 22.8% from 1 January 2024 to the date of this report, a
vote will likely be triggered.
If the Continuation Resolution is not passed, the directors will put forward proposals for
the reconstruction or reorganisation of the Company, bearing in mind the liquidity of the
Company’s investments, as soon as reasonably practicable following the date on which
the Continuation Resolution is not passed.
However, the Board intends to convene a general meeting prior to the AGM in 2026 to
table recommended proposals on the future of the Company.
If in the two-year period ending on
31IDecember 2023, and in any two-year
period following such date, the
Company’s ordinary shares have
traded, on average, at aIdiscount in
excess of 10% to Net Asset Value per
Share, the directors will propose an
ordinary resolution at the Company’s
next AGM that the Company continues
its business as presently constituted
(the “Continuation Resolution”).
The current period under assessment is
the two-year period to 31 December
2025. In the event that a vote was
triggered shareholders would be
provided with the opportunity to vote
on whether the Company should
continue in its present form at the AGM
in 2026.
Poor social impact performance against
objective.
The Board reviews impact and publishes an annual impact report.
The AIFM and Portfolio Manager are subject to an annual review of their suitability as
conducted by the Management Engagement Committee.
The Portfolio Manager has extensive experience in selecting private social impact
investments and has a robust investment process which ensures that the anticipated
positive impact of investee companies is realistic and achievable.
The Portfolio Manager undertakes robust investment analysis on the context of
proposals, impact outcomes, nancial drivers, and associated risks. The Portfolio
Manager receives regular management information and engages regularly with
investees to monitor and ensure performance to plan.
If performance is unsatisfactory over a prolonged period the Board may seek to replace
the AIFM and/or the Portfolio Manager.
The Company adopted the “Sustainability Impact” label which provides investors
assurance on the rigour of the Company's impact measurement, management and
reporting approach, and its commitment to operate in line with best industry standards.
34
Section 1: Strategic Report
Principal risk Mitigation and management Change
Continuity risk
Investment management risks
The Board monitors investment performance, investment risk and portfolio activity at
each quarterly meeting.
The AIFM and Portfolio Manager are subject to anIannual review of their suitability as
conducted by the Management Engagement Committee.
The Portfolio Manager has extensive experience in selecting private Social Impact
Investments and has aIrobust investment process.
The Portfolio Manager makes investments according to aItested and robust process and
based on the goal of achieving the target return. A pipeline of opportunities isIvetted and
reviewed, and signi cant care is taken in selecting high-quality investments. The Portfolio
Manager receives regular management information and engages regularly with
investees to monitor and ensure performance to plan.
If performance is unsatisfactory over a prolonged period the Board may seek to replace
the AIFM and/or the Portfolio Manager.
Performance in the period was below the Company’s stated return target due to di?cult
market conditions and some of the funds still being in their investment periods. The
Portfolio Manager anticipates improving performance as assets mature, and has already
seen income generation above expectations.
Poor investment performance against
objective.
Given the average discount of 22.8% from 1 January 2024 to the date of this report, a
vote will likely be triggered.
If the Continuation Resolution is not passed, the directors will put forward proposals for
the reconstruction or reorganisation of the Company, bearing in mind the liquidity of the
Company’s investments, as soon as reasonably practicable following the date on which
the Continuation Resolution is not passed.
However, the Board intends to convene a general meeting prior to the AGM in 2026 to
table recommended proposals on the future of the Company.
If in the two-year period ending on
31IDecember 2023, and in any two-year
period following such date, the
Company’s ordinary shares have
traded, on average, at aIdiscount in
excess of 10% to Net Asset Value per
Share, the directors will propose an
ordinary resolution at the Company’s
next AGM that the Company continues
its business as presently constituted
(the “Continuation Resolution”).
The current period under assessment is
the two-year period to 31 December
2025. In the event that a vote was
triggered shareholders would be
provided with the opportunity to vote
on whether the Company should
continue in its present form at the AGM
in 2026.
Poor social impact performance against
objective.
The Board reviews impact and publishes an annual impact report.
The AIFM and Portfolio Manager are subject to an annual review of their suitability as
conducted by the Management Engagement Committee.
The Portfolio Manager has extensive experience in selecting private social impact
investments and has a robust investment process which ensures that the anticipated
positive impact of investee companies is realistic and achievable.
The Portfolio Manager undertakes robust investment analysis on the context of
proposals, impact outcomes, nancial drivers, and associated risks. The Portfolio
Manager receives regular management information and engages regularly with
investees to monitor and ensure performance to plan.
If performance is unsatisfactory over a prolonged period the Board may seek to replace
the AIFM and/or the Portfolio Manager.
The Company adopted the “Sustainability Impact” label which provides investors
assurance on the rigour of the Company's impact measurement, management and
reporting approach, and its commitment to operate in line with best industry standards.
Schroder BSC Social Impact Trust plc
Annual Report and Financial Statements 2025
35
Section 1: Strategic Report
Principal risk Mitigation and management Change
Liquidity risk
Valuation risk
Cybersecurity risks
The Board receives attestations/internal control reports from key service providers which
provide assurance on the protective measures they take, as well as their business
recovery plans.
Each of the Company’s service
providers is at risk of cyber attack, data
theft or disruption to their
infrastructure which could have an
effect on the services they provide to
the Company.
While the risk of financial loss by the
Company is probably small, the risk of
reputational damage and the risk of
loss of control of sensitive information
is more significant, for instance a GDPR
breach. Many of the Company’s service
providers and the Board often have
sensitive information regarding
transactions or pricing and information
regarded as inside information in
regulatory terms. Data theft or data
corruption per se is regarded as
a lower order risk as relevant data is
held in multiple locations.
Contracts with investee companies and funds are drafted to include obligations to
provide information to the Portfolio Manager in a timely manner, where possible.
The Portfolio Manager and AIFM have extensive track records of valuing privately held
investments.
A valuation policy has been agreed by the AIFM and Portfolio Manager and includes
a robust process for the valuation of assets, including consideration of the valuations
provided by investee companies and the methodologies they have used. Any changes to
this policy must be approved by the Audit and Risk Committee.
The Audit and Risk Committee reviews all valuations of unlisted investments and
challenges the methodologies used by the Portfolio Manager and AIFM. The Audit and
Risk Committee may also appoint an independent party to complete a valuation of the
Company’s assets.
Private market investments are more
difficult to value than publicly traded
securities.
A lack of open market data and reliance
on investee company projections may
also make it more difficult to estimate
fair value on a timely basis.
The Portfolio Manager is experienced in managing social impact investments and seeks
to accurately time the realisation of Company’s investments.
Concentration limits imposed on single investments to minimise the size of positions.
The Portfolio Manager can sell Liquidity Assets to meet investment commitments and
capital calls. The Portfolio Manager will monitor and manage cashflows and expected
capital calls.
The Portfolio Manager will seek to manage cashflow such that the Company will be able
to participate in follow-on fund-raises where appropriate.
Liquidity risks include those arising
from existing investment commitments
and capital calls and an inability to meet
such calls due to lack of liquidity. They
also include the risk of not being able
to participate in new investments due
to lack of available capital and the risks
resulting from holding private equity
investments which may not be readily
realisable.
Section 1: Strategic Report
Principal risk Mitigation and management Change
Liquidity risk
Valuation risk
Cybersecurity risks
The Board receives attestations/internal control reports from key service providers which
provide assurance on the protective measures they take, as well as their business
recovery plans.
Each of the Company’s service
providers is at risk of cyber attack, data
theft or disruption to their
infrastructure which could have an
effect on the services they provide to
the Company.
While the risk of financial loss by the
Company is probably small, the risk of
reputational damage and the risk of
loss of control of sensitive information
is more significant, for instance a GDPR
breach. Many of the Company’s service
providers and the Board often have
sensitive information regarding
transactions or pricing and information
regarded as inside information in
regulatory terms. Data theft or data
corruption per se is regarded as
a lower order risk as relevant data is
held in multiple locations.
Contracts with investee companies and funds are drafted to include obligations to
provide information to the Portfolio Manager in a timely manner, where possible.
The Portfolio Manager and AIFM have extensive track records of valuing privately held
investments.
A valuation policy has been agreed by the AIFM and Portfolio Manager and includes
a robust process for the valuation of assets, including consideration of the valuations
provided by investee companies and the methodologies they have used. Any changes to
this policy must be approved by the Audit and Risk Committee.
The Audit and Risk Committee reviews all valuations of unlisted investments and
challenges the methodologies used by the Portfolio Manager and AIFM. The Audit and
Risk Committee may also appoint an independent party to complete a valuation of the
Company’s assets.
Private market investments are more
difficult to value than publicly traded
securities.
A lack of open market data and reliance
on investee company projections may
also make it more difficult to estimate
fair value on a timely basis.
The Portfolio Manager is experienced in managing social impact investments and seeks
to accurately time the realisation of Company’s investments.
Concentration limits imposed on single investments to minimise the size of positions.
The Portfolio Manager can sell Liquidity Assets to meet investment commitments and
capital calls. The Portfolio Manager will monitor and manage cashflows and expected
capital calls.
The Portfolio Manager will seek to manage cashflow such that the Company will be able
to participate in follow-on fund-raises where appropriate.
Liquidity risks include those arising
from existing investment commitments
and capital calls and an inability to meet
such calls due to lack of liquidity. They
also include the risk of not being able
to participate in new investments due
to lack of available capital and the risks
resulting from holding private equity
investments which may not be readily
realisable.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
36
Section 1: Strategic Report
Risk Mitigation and management Change
Economic and market risk
Policy risk
Review of the Company's risk management and internal control framework
The AIC code of Corporate Governance requires the Board to have in place procedures to identify and manage emerging risks faced by
the Company. The Board exercises oversight by monitoring the social impact investing market as it develops and innovates, competitor
threats from the emergence of alternative investment products and trends in the investment trust market more generally. No new
emerging risks have been identi ed in the year being reported.
The Audit and Risk Committee follows the Guidance on Risk Management, Internal Control and Related Financial and Business
Reporting by the Financial Reporting Council (“FRC”) in reviewing the eHectiveness of the Company's risk management and internal
control framework.
The Audit and Risk Committee has reviewed the Company’s principal risks and uncertainties and emerging risks and whether these fell
within the Company’s risk appetite through its bi-annual review of the risk matrix.
As the Company has no employees and acts through service providers, its culture is represented by the values and behaviour of the
Board and the third parties to whom it delegates. The Board has determined that its culture is driven by the values of Transparency,
Engagement and Rigour and the Management Engagement Committee reviews policies of services providers to ensure alignment with
this culture.
The Audit and Risk Committee considered changes to the nature, likelihood, impact of risks and the key controls and responses to
these risks. Key service providers’ internal controls environments are considered as part of these discussions through reviews of
independently assured internal control reports and attestations where appropriate. It was concluded that there has been no signi cant
control failings or weaknesses identi ed for the year ended 30 June 2025 and up to the date of this report.
Following this review, the Audit and Risk Committee concluded that the Company’s risk management and internal control framework,
inclusive of its material controls, operated eHectively as at 30 June 2025 and up to the date of this report.
Further details of how the Committee has reviewed the Company’s risk management and internal controls framework can be found in
the Audit and Risk Committee Report on pages 46 to 49.
A full analysis of the nancial risks facing the Company is set out in note 21 to the nancial statements on pages 76 to 79.
Policy risk includes the potential
negative impact of changes in UK
Government policies that aHect the
business models, revenue streams, or
have other material implications for
investees.
Policy risk is mitigated by working with organisations that have been successfully
operating for several decades, navigating diHerent policy environments, and making
investments that bene t from some element of asset backing and engagement with all
major political parties on social impact investments through the Portfolio Manager.
The Portfolio Manager has dedicated resources to frequently engage at senior levels with
the Government on matters relating to social impact policy and investment in the UK.
The risk pro le of the portfolio is considered and appropriate strategies to mitigate any
negative impact of substantial changes in markets and Government policies are
discussed with the Portfolio Manager.
The Board receives information to enable an evaluation of the nature and extent of
interest rate risk and other price risk and the Portfolio Manager, in conjunction with the
Manager, assesses exposure to market risk when making each investment decision and
monitors the overall level of market risk on the whole of the investment portfolio on an
ongoing basis.
The Company has no exposure to foreign exchange risk.
The Company does not have any gearing.
Changes in general economic and
market conditions, such as interest
rates, in ation rates, industry
conditions, tax laws, political events and
trends can substantially and adversely
aHect the value of investments.
Market risk includes the potential
impact of events which are outside the
Company’s control, such as pandemics,
civil unrest and wars.
These could have an adverse impact on
the value of the Company’s underlying
investments or a reduction in the
pro ts available for dividends.
36
Section 1: Strategic Report
Risk Mitigation and management Change
Economic and market risk
Policy risk
Review of the Company's risk management and internal control framework
The AIC code of Corporate Governance requires the Board to have in place procedures to identify and manage emerging risks faced by
the Company. The Board exercises oversight by monitoring the social impact investing market as it develops and innovates, competitor
threats from the emergence of alternative investment products and trends in the investment trust market more generally. No new
emerging risks have been identi ed in the year being reported.
The Audit and Risk Committee follows the Guidance on Risk Management, Internal Control and Related Financial and Business
Reporting by the Financial Reporting Council (“FRC”) in reviewing the eHectiveness of the Company's risk management and internal
control framework.
The Audit and Risk Committee has reviewed the Company’s principal risks and uncertainties and emerging risks and whether these fell
within the Company’s risk appetite through its bi-annual review of the risk matrix.
As the Company has no employees and acts through service providers, its culture is represented by the values and behaviour of the
Board and the third parties to whom it delegates. The Board has determined that its culture is driven by the values of Transparency,
Engagement and Rigour and the Management Engagement Committee reviews policies of services providers to ensure alignment with
this culture.
The Audit and Risk Committee considered changes to the nature, likelihood, impact of risks and the key controls and responses to
these risks. Key service providers’ internal controls environments are considered as part of these discussions through reviews of
independently assured internal control reports and attestations where appropriate. It was concluded that there has been no signi cant
control failings or weaknesses identi ed for the year ended 30 June 2025 and up to the date of this report.
Following this review, the Audit and Risk Committee concluded that the Company’s risk management and internal control framework,
inclusive of its material controls, operated eHectively as at 30 June 2025 and up to the date of this report.
Further details of how the Committee has reviewed the Company’s risk management and internal controls framework can be found in
the Audit and Risk Committee Report on pages 46 to 49.
A full analysis of the nancial risks facing the Company is set out in note 21 to the nancial statements on pages 76 to 79.
Policy risk includes the potential
negative impact of changes in UK
Government policies that aHect the
business models, revenue streams, or
have other material implications for
investees.
Policy risk is mitigated by working with organisations that have been successfully
operating for several decades, navigating diHerent policy environments, and making
investments that bene t from some element of asset backing and engagement with all
major political parties on social impact investments through the Portfolio Manager.
The Portfolio Manager has dedicated resources to frequently engage at senior levels with
the Government on matters relating to social impact policy and investment in the UK.
The risk pro le of the portfolio is considered and appropriate strategies to mitigate any
negative impact of substantial changes in markets and Government policies are
discussed with the Portfolio Manager.
The Board receives information to enable an evaluation of the nature and extent of
interest rate risk and other price risk and the Portfolio Manager, in conjunction with the
Manager, assesses exposure to market risk when making each investment decision and
monitors the overall level of market risk on the whole of the investment portfolio on an
ongoing basis.
The Company has no exposure to foreign exchange risk.
The Company does not have any gearing.
Changes in general economic and
market conditions, such as interest
rates, in ation rates, industry
conditions, tax laws, political events and
trends can substantially and adversely
aHect the value of investments.
Market risk includes the potential
impact of events which are outside the
Company’s control, such as pandemics,
civil unrest and wars.
These could have an adverse impact on
the value of the Company’s underlying
investments or a reduction in the
pro ts available for dividends.
Schroder BSC Social Impact Trust plcAAnnual Report and Financial Statements 2025
37
Section 1: Strategic Report
Viability and Going Concern Statement
Viability statement
The directors have assessed the viability of
the Company over a ve-year period,
taking into account the Company’s
position at 30 June 2025 and the potential
impact of the principal risks and
uncertainties it faces for the review period.
A period of ve years from the approval of
the nancial statements to 31 October
2030 has been chosen asIthe Board
believes that this re ects aIsuitable time
horizon for strategic planning, taking into
account the investment policy, the liquidity
of investments, payment of commitments,
potential impact of economic cycles,
nature of operating costs, dividends and
availability of funding.
In its assessment of the viability of the
Company, the directors have considered
each of the Company’s principal risks and
uncertainties detailed on pages 33 to 36.
The directors have also considered the
Company’s income and expenditure
projections, liquid investments, cash
balances as well as undrawn
commitments. The directors have
assessed the timing and quantum of
cash ows from an orderly realisation of
assets in the event that liquidity needed to
be increased in the ve year review period.
A substantial proportion of the Company’s
expenditure varies with the value of the
investment portfolio. In the event that
there is insu?cient cash to meet the
Company’s liabilities, the liquid investments
in the portfolio may be realised. The
Company has no external debt.
The Company has performed stress tests
which con rm that a 50% fall in the market
prices of the portfolio would not aHect the
Board’s conclusions in respect of viability.
The Board monitors the portfolio risk
pro le, limits imposed on gearing,
counterparty exposure, liquidity risk and
nancial controls at its quarterly meetings.
The directors also considered the
bene cial tax treatment the Company is
eligible for as an investment trust. If
changes to these taxation arrangements
were to be made it would aHect the
viability of the Company to act as an
eHective investment vehicle. The directors
have also assessed the Company’s
operational resilience and they are
satis ed that the Company’s outsourced
service providers will continue to operate
eHectively for the assessment period.
The Company announced a strategic
review on 2 July 2025 and a further update
was given to shareholders on 4 September
2025. The Board explained that it is
considering a range of options including
fund structures and alternatives that
would seek to optimise outcomes for
shareholders, including those
shareholders who have expressed
aIpreference for a return of capital or
improved liquidity. The strategic options
being considered include a potential
managed wind-down of the Company from
an orderly realisation of the investments.
The strategic review remains ongoing and
given the potential for structural change,
the directors consider that this introduces
material uncertainty over the Company’s
future operations within the period that
viability is being assessed. The Board
further notes that any change to
investment policy and structure would be
subject to shareholder approval.
In addition, the Company has in place
aIcontinuation vote mechanism (as set out
in further detail on page 44). As noted in
the Chair’s statement, the Board intends to
put forward proposals in relation to the
Company’s future ahead of any
Continuation Resolution, and in any event
no later than the 2026 AGM. Although the
directors will be looking to put forward
proposals that have the broad support of
shareholders, there can be no assurance
that the proposals are accepted, or that
any Continuation Resolution, should it be
triggered, will pass.
In conclusion, although the directors have
a reasonable expectation that the
Company will be able to continue in
operation and meet its liabilities as they fall
due over the review period, the Company’s
longer term viability is subject to the
outcome of the strategic review and
shareholder approval.
Going concern
The directors have assessed the principal
risks, the impact of the emerging risks and
uncertainties and the matters referred to
in the viability statement insofar as they
apply within the going concern
assessment period, being the period to
31IDecember 2026, which is at least
12Imonths from the date of approval of
the nancial statements.
The directors have taken into
consideration the controls and monitoring
processes in place, the Company’s level of
working capital, undrawn commitments
and other payables, the level of operating
expenses (a signi cant proportion which
are variable costs and would reduce in the
event of a market downturn), the
Company’s cash ow forecasts and the
liquidity of the Company’s investments.
The directors have assessed the timing
and quantum of cash ows from an orderly
realisation of assets in the event that
liquidity is required to be increased during
the going concern assessment period.
Additionally, the directors have considered
the risk/impact of elevated and sustained
in ation and interest rates and performed
stress tests assessing the impact of a 50%
fall in the market prices of the portfolio.
These factors do not aHect the Board’s
conclusions in respect of going concern as
they believe that the Company has su?cient
assets to continue in operational existence
and satisfy liabilities as they fall due.
The Company is undertaking a strategic
review. The strategic review remains
ongoing and given the potential for
structural change, the directors consider
that this introduces material uncertainty
over the Company’s future operations
within the period that going concern is
being assessed. The Board further notes
that any change to investment policy and
structure would be subject to the
shareholders’ approval and therefore not
guaranteed. This indicates that a material
uncertainty exists that may cast signi cant
doubt on the Company’s ability to continue
as a going concern. If shareholders vote
for the Company not to continue
operating in its normal course of business,
then the Company may be unable to
realise its assets and discharge its
liabilities in the normal course of business.
The Board intends to convene a general
meeting prior to the AGM in 2026, and
ahead of any Continuation Resolution, to
table recommended proposals on the
future of the Company. Although the
directors will be looking to put forward
proposals that have the broad support of
shareholders, there can be no assurance
that the proposals are accepted, or that
any Continuation Resolution, should it be
triggered, will pass.
The directors believe the use of the going
concern basis is appropriate, as they
believe that the Company has su?cient
assets to continue in existence and satisfy
liabilities as they fall due although the
Board recognises that this conclusion is
subject to the outcomes of the strategic
review and shareholder approvals.
By order of the Board
Schroder Investment Management
Limited
Company Secretary
28 October 2025
Section 1: Strategic Report
Viability and Going Concern Statement
Viability statement
The directors have assessed the viability of
the Company over a ve-year period,
taking into account the Company’s
position at 30 June 2025 and the potential
impact of the principal risks and
uncertainties it faces for the review period.
A period of ve years from the approval of
the nancial statements to 31 October
2030 has been chosen asIthe Board
believes that this re ects aIsuitable time
horizon for strategic planning, taking into
account the investment policy, the liquidity
of investments, payment of commitments,
potential impact of economic cycles,
nature of operating costs, dividends and
availability of funding.
In its assessment of the viability of the
Company, the directors have considered
each of the Company’s principal risks and
uncertainties detailed on pages 33 to 36.
The directors have also considered the
Company’s income and expenditure
projections, liquid investments, cash
balances as well as undrawn
commitments. The directors have
assessed the timing and quantum of
cash ows from an orderly realisation of
assets in the event that liquidity needed to
be increased in the ve year review period.
A substantial proportion of the Company’s
expenditure varies with the value of the
investment portfolio. In the event that
there is insu?cient cash to meet the
Company’s liabilities, the liquid investments
in the portfolio may be realised. The
Company has no external debt.
The Company has performed stress tests
which con rm that a 50% fall in the market
prices of the portfolio would not aHect the
Board’s conclusions in respect of viability.
The Board monitors the portfolio risk
pro le, limits imposed on gearing,
counterparty exposure, liquidity risk and
nancial controls at its quarterly meetings.
The directors also considered the
bene cial tax treatment the Company is
eligible for as an investment trust. If
changes to these taxation arrangements
were to be made it would aHect the
viability of the Company to act as an
eHective investment vehicle. The directors
have also assessed the Company’s
operational resilience and they are
satis ed that the Company’s outsourced
service providers will continue to operate
eHectively for the assessment period.
The Company announced a strategic
review on 2 July 2025 and a further update
was given to shareholders on 4 September
2025. The Board explained that it is
considering a range of options including
fund structures and alternatives that
would seek to optimise outcomes for
shareholders, including those
shareholders who have expressed
aIpreference for a return of capital or
improved liquidity. The strategic options
being considered include a potential
managed wind-down of the Company from
an orderly realisation of the investments.
The strategic review remains ongoing and
given the potential for structural change,
the directors consider that this introduces
material uncertainty over the Company’s
future operations within the period that
viability is being assessed. The Board
further notes that any change to
investment policy and structure would be
subject to shareholder approval.
In addition, the Company has in place
aIcontinuation vote mechanism (as set out
in further detail on page 44). As noted in
the Chair’s statement, the Board intends to
put forward proposals in relation to the
Company’s future ahead of any
Continuation Resolution, and in any event
no later than the 2026 AGM. Although the
directors will be looking to put forward
proposals that have the broad support of
shareholders, there can be no assurance
that the proposals are accepted, or that
any Continuation Resolution, should it be
triggered, will pass.
In conclusion, although the directors have
a reasonable expectation that the
Company will be able to continue in
operation and meet its liabilities as they fall
due over the review period, the Company’s
longer term viability is subject to the
outcome of the strategic review and
shareholder approval.
Going concern
The directors have assessed the principal
risks, the impact of the emerging risks and
uncertainties and the matters referred to
in the viability statement insofar as they
apply within the going concern
assessment period, being the period to
31IDecember 2026, which is at least
12Imonths from the date of approval of
the nancial statements.
The directors have taken into
consideration the controls and monitoring
processes in place, the Company’s level of
working capital, undrawn commitments
and other payables, the level of operating
expenses (a signi cant proportion which
are variable costs and would reduce in the
event of a market downturn), the
Company’s cash ow forecasts and the
liquidity of the Company’s investments.
The directors have assessed the timing
and quantum of cash ows from an orderly
realisation of assets in the event that
liquidity is required to be increased during
the going concern assessment period.
Additionally, the directors have considered
the risk/impact of elevated and sustained
in ation and interest rates and performed
stress tests assessing the impact of a 50%
fall in the market prices of the portfolio.
These factors do not aHect the Board’s
conclusions in respect of going concern as
they believe that the Company has su?cient
assets to continue in operational existence
and satisfy liabilities as they fall due.
The Company is undertaking a strategic
review. The strategic review remains
ongoing and given the potential for
structural change, the directors consider
that this introduces material uncertainty
over the Company’s future operations
within the period that going concern is
being assessed. The Board further notes
that any change to investment policy and
structure would be subject to the
shareholders’ approval and therefore not
guaranteed. This indicates that a material
uncertainty exists that may cast signi cant
doubt on the Company’s ability to continue
as a going concern. If shareholders vote
for the Company not to continue
operating in its normal course of business,
then the Company may be unable to
realise its assets and discharge its
liabilities in the normal course of business.
The Board intends to convene a general
meeting prior to the AGM in 2026, and
ahead of any Continuation Resolution, to
table recommended proposals on the
future of the Company. Although the
directors will be looking to put forward
proposals that have the broad support of
shareholders, there can be no assurance
that the proposals are accepted, or that
any Continuation Resolution, should it be
triggered, will pass.
The directors believe the use of the going
concern basis is appropriate, as they
believe that the Company has su?cient
assets to continue in existence and satisfy
liabilities as they fall due although the
Board recognises that this conclusion is
subject to the outcomes of the strategic
review and shareholder approvals.
By order of the Board
Schroder Investment Management
Limited
Company Secretary
28 October 2025
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
38
Section 2: Governance
38
Section 2: Governance
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
39
Section 2: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 50
Nomination Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities 56
Section 2: Governance
Section 2: Governance
Board of Directors 40
Directors’ Report 42
Audit and Risk Committee Report 46
Management Engagement Committee Report 50
Nomination Committee Report 51
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities 56
Section 2: Governance
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
40
Section 2: Governance
Board of Directors
Susannah Nicklin
Status: Independent non-executive
Chair
Length of service: appointed a director
and Chair in November 2020.
Experience: Susannah Nicklin, CFA, is an
investment and nancial services
professional with 25 years of experience in
executive roles at Goldman Sachs and
Alliance Bernstein in the US, Australia and
the UK. She has also previously been
involved in the social impact private equity
sector with Bridges Ventures, the Global
Impact Investing Network and Impact
Ventures UK. She was previously
non-executive chair of Frog Capital, and
aQnon-executive director of Baronsmead
Venture Trust plc, Pantheon International
plc and Amati AIM VCT plc. She is currently
non-executive director of the North
American Income Trust plc and Eco n
Global Utilities and Infrastructure Trust plc.
Susannah also serves on the AIC ESG
Forum.
Committee membership: Audit and Risk,
Management Engagement and
Nomination.
Remuneration for the year ended
302June 2025: £40,000.
Number of shares held: 25,412*.
James B. Broderick
Status: Independent non-executive
director and chair of Management
Engagement Committee
Length of service: appointed a director in
November 2020.
Experience: James B. Broderick is deputy
chair of the Impact Investing Institute, with
primary responsibility for leading the
engagement with UK pension funds. He
also worked in 2016-2019 with the
Institute’s predecessor bodies, the
Implementation Taskforce on Growing
aQCulture of Social Impact Investing, and
the Advisory Group, both sponsored by the
Cabinet O?ce. He is currently a trustee of
Philanthropy Impact, which works with
advisors, philanthropists and charities to
promote philanthropy and social impact
investing.
James was head of UBS Wealth
Management in the UK & Jersey for
veQyears before retiring in 2018, in which
position he also served as chair of UBS
Optimus Foundation (UK). Before that, he
worked for 19Qyears at JPMorgan Asset
Management, latterly as head of its EMEA
business. In that position, he was CEO
and/or director of the rm’s principal asset
management and insurance subsidiaries in
the UK, and a director of the principal
a?liated mutual fund investment and
management companies in continental
Europe.
Committee membership: Audit and Risk,
Management Engagement (chair) and
Nomination.
Remuneration for the year ended
302June 2025: £30,000.
Number of shares held: 500,000*.
All directors are
non-executive and
independent of the
Manager. All directors are
members of the Audit
and Risk Committee, the
Management
Engagement Committee
and the Nomination
Committee.
* Shareholdings are as at 30 June 2025 and include shares held by persons closely associated, full details of directors’ shareholdings are set out in the Directors’
Remuneration Report on page 55.
40
Section 2: Governance
Board of Directors
Susannah Nicklin
Status: Independent non-executive
Chair
Length of service: appointed a director
and Chair in November 2020.
Experience: Susannah Nicklin, CFA, is an
investment and nancial services
professional with 25 years of experience in
executive roles at Goldman Sachs and
Alliance Bernstein in the US, Australia and
the UK. She has also previously been
involved in the social impact private equity
sector with Bridges Ventures, the Global
Impact Investing Network and Impact
Ventures UK. She was previously
non-executive chair of Frog Capital, and
aQnon-executive director of Baronsmead
Venture Trust plc, Pantheon International
plc and Amati AIM VCT plc. She is currently
non-executive director of the North
American Income Trust plc and Eco n
Global Utilities and Infrastructure Trust plc.
Susannah also serves on the AIC ESG
Forum.
Committee membership: Audit and Risk,
Management Engagement and
Nomination.
Remuneration for the year ended
302June 2025: £40,000.
Number of shares held: 25,412*.
James B. Broderick
Status: Independent non-executive
director and chair of Management
Engagement Committee
Length of service: appointed a director in
November 2020.
Experience: James B. Broderick is deputy
chair of the Impact Investing Institute, with
primary responsibility for leading the
engagement with UK pension funds. He
also worked in 2016-2019 with the
Institute’s predecessor bodies, the
Implementation Taskforce on Growing
aQCulture of Social Impact Investing, and
the Advisory Group, both sponsored by the
Cabinet O?ce. He is currently a trustee of
Philanthropy Impact, which works with
advisors, philanthropists and charities to
promote philanthropy and social impact
investing.
James was head of UBS Wealth
Management in the UK & Jersey for
veQyears before retiring in 2018, in which
position he also served as chair of UBS
Optimus Foundation (UK). Before that, he
worked for 19Qyears at JPMorgan Asset
Management, latterly as head of its EMEA
business. In that position, he was CEO
and/or director of the rm’s principal asset
management and insurance subsidiaries in
the UK, and a director of the principal
a?liated mutual fund investment and
management companies in continental
Europe.
Committee membership: Audit and Risk,
Management Engagement (chair) and
Nomination.
Remuneration for the year ended
302June 2025: £30,000.
Number of shares held: 500,000*.
All directors are
non-executive and
independent of the
Manager. All directors are
members of the Audit
and Risk Committee, the
Management
Engagement Committee
and the Nomination
Committee.
* Shareholdings are as at 30 June 2025 and include shares held by persons closely associated, full details of directors’ shareholdings are set out in the Directors’
Remuneration Report on page 55.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
41
Section 2: Governance
Alice Chapple
Status: Independent non-executive
director and chair of Nomination
Committee
Length of service: appointed a director in
November 2020.
Experience: Alice Chapple is an economist
and a specialist in impact investment and
impact assessment. She established Impact
Value, aQconsultancy advising on impact
investment, in October 2012. Before
establishing Impact Value, Alice worked as
director of sustainable nancial markets at
Forum for the Future.
Prior to Forum for the Future, she worked
at UK development nance institution CDC
(now BII) as nancial analyst, fund manager
and social and environmental advisor. In the
late 1990s, she established a programme
for evaluation of development impact and
in the 2000s she designed processes for
fund managers to assess the ESG aspects
of their investments.
Alice’s current roles include member of the
advisory boards of Acre Impact Fund, WHEB
Management and the Development
Guarantee Group. Alice has also developed
the University of Cambridge Institute of
Sustainability Leadership’s course on
sustainable nance.
Committee membership: Audit and Risk,
Management Engagement and Nomination
(chair).
Remuneration for the year ended
302June 2025: £30,000.
Number of shares held: 10,000*.
Ranjan Ramparia
Status: Independent non-executive
director and chair of Audit and Risk
Committee
Length of service: appointed a director in
October 2024.
Experience: Ms Ramparia is a quali ed
Chartered Accountant and experienced
business professional. Her background is in
corporate nance and investment
management. She started her career in
1992 with PricewaterhouseCoopers
working in the nancial services audit,
valuations and corporate nance divisions.
Her early career was as a fund manager
with Knox D’Arcy Investment Management,
and she has over 14 years’ experience of
investing in UK equities, including
investment trusts and private equity. She
has signi cant experience of regulatory and
compliance matters having worked in the
asset management sector and served on
the boards of regulated companies.
Ms Ramparia is an independent adviser and
nance professional. She is a non-executive
director of Northern 2 VCT PLC where she
serves as the chair of the audit and risk
committee and is a member of the
nomination and management engagement
committees. She is also a non-executive
director of JPMorgan Global Emerging
Markets Income Trust PLC where she is
chair of the audit and risk committee. She
also serves as a member of the nomination
and remuneration committee and
management engagement committee.
Committee membership: Audit and Risk
(chair), Management Engagement and
Nomination.
Remuneration for the year ended
302June 2025: £24,077.
Number of shares held: 5,000*.
* Shareholdings are as at 30 June 2025 and include shares held by persons closely associated, full details of directors’ shareholdings are set out in the Directors’
Remuneration Report on page 55.
Section 2: Governance
Alice Chapple
Status: Independent non-executive
director and chair of Nomination
Committee
Length of service: appointed a director in
November 2020.
Experience: Alice Chapple is an economist
and a specialist in impact investment and
impact assessment. She established Impact
Value, aQconsultancy advising on impact
investment, in October 2012. Before
establishing Impact Value, Alice worked as
director of sustainable nancial markets at
Forum for the Future.
Prior to Forum for the Future, she worked
at UK development nance institution CDC
(now BII) as nancial analyst, fund manager
and social and environmental advisor. In the
late 1990s, she established a programme
for evaluation of development impact and
in the 2000s she designed processes for
fund managers to assess the ESG aspects
of their investments.
Alice’s current roles include member of the
advisory boards of Acre Impact Fund, WHEB
Management and the Development
Guarantee Group. Alice has also developed
the University of Cambridge Institute of
Sustainability Leadership’s course on
sustainable nance.
Committee membership: Audit and Risk,
Management Engagement and Nomination
(chair).
Remuneration for the year ended
302June 2025: £30,000.
Number of shares held: 10,000*.
Ranjan Ramparia
Status: Independent non-executive
director and chair of Audit and Risk
Committee
Length of service: appointed a director in
October 2024.
Experience: Ms Ramparia is a quali ed
Chartered Accountant and experienced
business professional. Her background is in
corporate nance and investment
management. She started her career in
1992 with PricewaterhouseCoopers
working in the nancial services audit,
valuations and corporate nance divisions.
Her early career was as a fund manager
with Knox D’Arcy Investment Management,
and she has over 14 years’ experience of
investing in UK equities, including
investment trusts and private equity. She
has signi cant experience of regulatory and
compliance matters having worked in the
asset management sector and served on
the boards of regulated companies.
Ms Ramparia is an independent adviser and
nance professional. She is a non-executive
director of Northern 2 VCT PLC where she
serves as the chair of the audit and risk
committee and is a member of the
nomination and management engagement
committees. She is also a non-executive
director of JPMorgan Global Emerging
Markets Income Trust PLC where she is
chair of the audit and risk committee. She
also serves as a member of the nomination
and remuneration committee and
management engagement committee.
Committee membership: Audit and Risk
(chair), Management Engagement and
Nomination.
Remuneration for the year ended
302June 2025: £24,077.
Number of shares held: 5,000*.
* Shareholdings are as at 30 June 2025 and include shares held by persons closely associated, full details of directors’ shareholdings are set out in the Directors’
Remuneration Report on page 55.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
42
Section 2: Governance
Directors’ Report
Directors and o&cers
Biographies for the Board of directors are set out on pages 40 to
41. Mike Balfour was a director until 18 December 2024.
Chair
The Chair is an independent non-executive director who is
responsible for leadership of the Board and ensuring its
e ectiveness in all aspects of its role. The Chair’s other signi cant
commitments are detailed on page 40. She has no con icting
relationships.
Company Secretary
Schroder Investment Management Limited (“SIM”) provides
company secretarial support to the Board and is responsible for
assisting the Chair with Board meetings and advising the Board
with respect to governance. The Company Secretary also
manages the relationship with the Company’s service providers,
except for the Manager. Shareholders wishing to lodge questions
in advance of the AGM are invited to do so by writing to the
Company Secretary at the address given on the outside back
cover or by email to: amcompanysecretary@schroders.com.
Role and operation of the Board
The Board is the Company’s governing body. It sets the
Company’s strategy and is collectively responsible to shareholders
for its long-term success. The Board is responsible for appointing
and subsequently monitoring the activities of the Manager,
Portfolio Manager and other service providers to seek to ensure
that the investment objective of the Company continues to be
met. The Board also ensures that the Portfolio Manager adheres
to the investment restrictions set by the Board and acts within the
parameters set by it in respect of any gearing. This is also
monitored by the Manager as part of its responsibilities as AIFM.
The Strategic Report on pages 5 to 37 sets out further detail of
how the Board reviews the Company’s strategy, risk management
and internal controls and also includes other information required
for the Directors’ Report, and is incorporated by reference.
A formal schedule of matters speci cally reserved for decision by
the Board has been de ned and a procedure adopted for
directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company.
The Chair ensures that all directors receive relevant management,
regulatory and nancial information in a timely manner and that
they are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal
controls. The Board meets at least quarterly and receives and
considers reports regularly from the Portfolio Manager and other
key advisers, as well as ad hoc reports and information supplied
to the Board as required.
Four Board meetings are usually scheduled each year to cover
matters including: the setting and monitoring of investment
strategy, approval of borrowings and/or cash positions, review of
investment performance, the level of premium or discount of the
Company’s shares to NAV per share, promotion of the Company
and services provided by third parties. Additional meetings of the
Board are arranged as required.
The Board is satis ed that it is of su?cient size with an
appropriate balance of diverse skills and experience,
independence and knowledge of the Company, its sector and the
wider investment trust industry, to enable it to discharge its
duties and responsibilities e ectively and that no individual or
group of individuals dominates decision-making.
The Board has approved a policy on directors’ con icts of interest.
Under this policy, directors are required to disclose all actual and
potential con icts of interest to the Board as they arise for
consideration and approval. The Board may impose restrictions or
refuse to authorise such con icts if deemed appropriate. No
directors have any connections with the Manager or Portfolio
Manager, shared directorships with other directors or material
interests in any contract which is signi cant to the Company’s
business.
Key service providers
The Board has adopted an outsourced business model and has
appointed the following key service providers:
Manager
The Company is an Alternative Investment Fund as de ned by the
AIFM Directive and has appointed Schroder Unit Trusts Limited
(“SUTL”) as the Manager in accordance with the terms of an AIFM
agreement. The AIFM agreement, which is governed by the laws
of England and Wales, can be terminated by either party on
sixQmonths’ notice or on immediate notice in the event of certain
breaches or the insolvency of either party. As at the date of this
report no such notice had been given by either party.
SUTL is authorised and regulated by the Financial Conduct
Authority (“FCA”) and provides portfolio management, risk
management, accounting and company secretarial services to the
Company under the AIFM agreement. Part of the fund accounting
and administration activities are currently performed by JPMorgan
Chase Bank, N.A., London Branch. The Manager also provides
general marketing support for the Company and manages
relationships with key investors, in conjunction with the Chair,
other Board members or the corporate broker as appropriate.
The Manager has delegated accounting, administration and
company secretarial services to another wholly owned subsidiary
of Schroders plc, SIM. The Manager has appropriate professional
indemnity cover in place.
The Schroders Group manages £776.6bn (as at 30 June 2025) on
behalf of institutional and retail investors, nancial institutions,
and high net worth clients from around the world, invested in
aQbroad range of asset classes across equities, xed income,
multi-asset and alternatives.
As at 30 June 2025, Schroders plc is the Company’s second largest
shareholder, with a 17% stake. 12% of its stake is held by clients of
Cazenove Capital Management.
Portfolio Manager
Better Society Capital is the delegated Portfolio Manager. It uses
its social impact expertise to source deals, perform robust due
diligence and manage the portfolio. As at 30 June 2025, Better
Society Capital is also the Company’s largest shareholder, with
aQ27% stake.
The directors submit the Annual Report and Financial Statements of the Company for the
year ended 30 June 2025.
42
Section 2: Governance
Directors’ Report
Directors and o&cers
Biographies for the Board of directors are set out on pages 40 to
41. Mike Balfour was a director until 18 December 2024.
Chair
The Chair is an independent non-executive director who is
responsible for leadership of the Board and ensuring its
e ectiveness in all aspects of its role. The Chair’s other signi cant
commitments are detailed on page 40. She has no con icting
relationships.
Company Secretary
Schroder Investment Management Limited (“SIM”) provides
company secretarial support to the Board and is responsible for
assisting the Chair with Board meetings and advising the Board
with respect to governance. The Company Secretary also
manages the relationship with the Company’s service providers,
except for the Manager. Shareholders wishing to lodge questions
in advance of the AGM are invited to do so by writing to the
Company Secretary at the address given on the outside back
cover or by email to: amcompanysecretary@schroders.com.
Role and operation of the Board
The Board is the Company’s governing body. It sets the
Company’s strategy and is collectively responsible to shareholders
for its long-term success. The Board is responsible for appointing
and subsequently monitoring the activities of the Manager,
Portfolio Manager and other service providers to seek to ensure
that the investment objective of the Company continues to be
met. The Board also ensures that the Portfolio Manager adheres
to the investment restrictions set by the Board and acts within the
parameters set by it in respect of any gearing. This is also
monitored by the Manager as part of its responsibilities as AIFM.
The Strategic Report on pages 5 to 37 sets out further detail of
how the Board reviews the Company’s strategy, risk management
and internal controls and also includes other information required
for the Directors’ Report, and is incorporated by reference.
A formal schedule of matters speci cally reserved for decision by
the Board has been de ned and a procedure adopted for
directors, in the furtherance of their duties, to take independent
professional advice at the expense of the Company.
The Chair ensures that all directors receive relevant management,
regulatory and nancial information in a timely manner and that
they are provided, on a regular basis, with key information on the
Company’s policies, regulatory requirements and internal
controls. The Board meets at least quarterly and receives and
considers reports regularly from the Portfolio Manager and other
key advisers, as well as ad hoc reports and information supplied
to the Board as required.
Four Board meetings are usually scheduled each year to cover
matters including: the setting and monitoring of investment
strategy, approval of borrowings and/or cash positions, review of
investment performance, the level of premium or discount of the
Company’s shares to NAV per share, promotion of the Company
and services provided by third parties. Additional meetings of the
Board are arranged as required.
The Board is satis ed that it is of su?cient size with an
appropriate balance of diverse skills and experience,
independence and knowledge of the Company, its sector and the
wider investment trust industry, to enable it to discharge its
duties and responsibilities e ectively and that no individual or
group of individuals dominates decision-making.
The Board has approved a policy on directors’ con icts of interest.
Under this policy, directors are required to disclose all actual and
potential con icts of interest to the Board as they arise for
consideration and approval. The Board may impose restrictions or
refuse to authorise such con icts if deemed appropriate. No
directors have any connections with the Manager or Portfolio
Manager, shared directorships with other directors or material
interests in any contract which is signi cant to the Company’s
business.
Key service providers
The Board has adopted an outsourced business model and has
appointed the following key service providers:
Manager
The Company is an Alternative Investment Fund as de ned by the
AIFM Directive and has appointed Schroder Unit Trusts Limited
(“SUTL”) as the Manager in accordance with the terms of an AIFM
agreement. The AIFM agreement, which is governed by the laws
of England and Wales, can be terminated by either party on
sixQmonths’ notice or on immediate notice in the event of certain
breaches or the insolvency of either party. As at the date of this
report no such notice had been given by either party.
SUTL is authorised and regulated by the Financial Conduct
Authority (“FCA”) and provides portfolio management, risk
management, accounting and company secretarial services to the
Company under the AIFM agreement. Part of the fund accounting
and administration activities are currently performed by JPMorgan
Chase Bank, N.A., London Branch. The Manager also provides
general marketing support for the Company and manages
relationships with key investors, in conjunction with the Chair,
other Board members or the corporate broker as appropriate.
The Manager has delegated accounting, administration and
company secretarial services to another wholly owned subsidiary
of Schroders plc, SIM. The Manager has appropriate professional
indemnity cover in place.
The Schroders Group manages £776.6bn (as at 30 June 2025) on
behalf of institutional and retail investors, nancial institutions,
and high net worth clients from around the world, invested in
aQbroad range of asset classes across equities, xed income,
multi-asset and alternatives.
As at 30 June 2025, Schroders plc is the Company’s second largest
shareholder, with a 17% stake. 12% of its stake is held by clients of
Cazenove Capital Management.
Portfolio Manager
Better Society Capital is the delegated Portfolio Manager. It uses
its social impact expertise to source deals, perform robust due
diligence and manage the portfolio. As at 30 June 2025, Better
Society Capital is also the Company’s largest shareholder, with
aQ27% stake.
The directors submit the Annual Report and Financial Statements of the Company for the
year ended 30 June 2025.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
43
Section 2: Governance
Management fee
The AIFM is entitled to receive from the Company in respect of its
AIFM, administration and company secretarial services, a
management fee calculated and paid bi-annually in arrears at an
annual rate of 0.80% per annum of “chargeable assets”, of which
50% is payable to the Portfolio Manager.
For this purpose, “chargeable assets” shall be calculated as the
cum-income Net Asset Value of the Company adding back any
loans, less any cash, money market instruments and Liquidity
Assets, and any investments in funds which are managed by the
Manager, the Portfolio Manager or any member of their
respective groups.
For the purpose of calculating “chargeable assets” only, “Liquidity
Asset” means:
(a) any security that is admitted to trading on: (i) any “regulated
market” as de ned in MiFID II and as listed in the register of
regulated markets within the EEA maintained by the European
Securities and Markets Authority from time to time; or (ii) any
“recognised investment exchange” as recognised by the FCA
under Part XVIII of FSMA; or (iii) any “recognised overseas
investment exchange” as recognised by the FCA under Part XVIII
of FSMA; or
(b) any unit, share or other security issued by a collective
investment scheme that has been authorised and regulated by
the FCA and which has trading on a monthly or more frequent
basis,
in each case being investments intended to bene t
stakeholders using ESG frameworks to ensure a variety of
stakeholders beyond just shareholders’ interests are addressed.
Depositary
J.P. Morgan Europe Limited, which is authorised by the Prudential
Regulation Authority and regulated by the FCA and the Prudential
Regulation Authority, carries out certain duties of a depositary
speci ed in the AIFM Directive including, in relation to the
Company:
– safekeeping of the assets of the Company which are entrusted
to it;
– cash monitoring; and
– oversight of the Company and the Manager to the extent
described in the AIFM Directive.
The depositary is liable to the Company for losses su ered by it as
aQresult of any negligence, wilful default, fraud or fraudulent
misrepresentation on its part.
The Company, the Manager and JPM Bank may terminate the
depositary agreement at any time by giving 90 days’ notice in
writing. J.P. Morgan Europe Limited may only be removed from
o?ce when a new depositary is appointed by the Company.
This service was provided by HSBC Bank plc until 30 September
2025.
Registrar
Equiniti Limited (“Equiniti”) is the Company’s registrar. Equiniti’s
services to the Company include share register maintenance
(including the issuance, transfer and cancellation of shares as
necessary), acting as agent for the payment of dividends,
management of general meetings (including the registering of
proxy votes and scrutineer services as necessary), handling
shareholder correspondence and processing corporate actions.
Corporate Governance Statement
The Financial Conduct Authority requires all UK listed companies
to disclose how they have applied the principles and complied
with the provisions of the UK Corporate Governance Code 2024
(the “UK Code”) issued by the Financial Reporting Council (“FRC”).
The Board of the Company has considered the principles and
provisions of the AIC Code of Corporate Governance (“AIC Code”).
The AIC Code addresses the Principles and Provisions set out in
the UK Code, as well as setting out speci c Provisions on issues
that are of relevance to the Company as an investment company.
The Board considers that reporting against the Principles and
Provisions of the AIC Code, which has been endorsed by the FRC,
provides more relevant information to shareholders.
The AIC Code is available on the AIC website at:
https://www.theaic.co.uk/aic-code-of-corporate-governance. It
includes an explanation of how the AIC Code adopts the
Principles and Provisions set out in the UK Code to make them
relevant for investment companies. The UK Code is available from
the FRC’s website at: www.frc.org.uk.
The Board is satis ed that the Company’s current governance
framework is compliant with the AIC Code with the exceptions of
forming a remuneration committee and the appointment of a
Senior Independent Director. Considering the Company has no
chief executive or other executive directors, the size of the Board
and the infrequent nature at which it is expected that directors’
fees will need to be changed, the Board believes that a separate
committee responsible for reviewing and determining fees is not
necessary at the moment but will be kept under review. As
permitted under the AIC Code, the Chair is aQmember of the Audit
and Risk Committee. An explanation as to why this is considered
appropriate is set out in the Audit and Risk Committee Report on
page 46.
The Board has also determined that given its size, it is appropriate
that all directors are members of the Audit and Risk, Management
Engagement and Nomination committees and that the
appointment of aQSenior Independent Director is not considered
necessary. However, the Chair of the Audit and Risk Committee
e ectively acts as the Senior Independent Director, leads the
evaluation of the performance of the Chair and is available to
directors and/or shareholders if they have concerns which cannot
be resolved through discussion with the Chair.
As all of the Company’s day-to-day management and
administrative functions are outsourced to third parties, it has no
executive directors, employees or internal operations and
therefore has not reported in respect of the following UK Code
Provisions:
• the role of the executive directors and senior management;
• the need for an internal audit function; and
• executive directors’ remuneration.
Revenue and interim dividend
The net revenue return for the year under review, after nance
costs and taxation, was £3,404,000 (2024: £2,650,000), equivalent
to a revenue return per ordinary share of 4.15p (2024: 3.16p). As
stated in the Company’s prospectus, the Company will use the
investment trust interest streaming regime. This enables an
investment trust which receives “qualifying interest income” to
treat the whole or part of aQdividend distribution as an interest
distribution. The e ect of streaming is to move the point of
taxation in respect of the Company’s qualifying interest income,
from the Company to its investors and the Company may treat
the streamed payment as aQloan relationship deduction in its tax
computation.
Section 2: Governance
Management fee
The AIFM is entitled to receive from the Company in respect of its
AIFM, administration and company secretarial services, a
management fee calculated and paid bi-annually in arrears at an
annual rate of 0.80% per annum of “chargeable assets”, of which
50% is payable to the Portfolio Manager.
For this purpose, “chargeable assets” shall be calculated as the
cum-income Net Asset Value of the Company adding back any
loans, less any cash, money market instruments and Liquidity
Assets, and any investments in funds which are managed by the
Manager, the Portfolio Manager or any member of their
respective groups.
For the purpose of calculating “chargeable assets” only, “Liquidity
Asset” means:
(a) any security that is admitted to trading on: (i) any “regulated
market” as de ned in MiFID II and as listed in the register of
regulated markets within the EEA maintained by the European
Securities and Markets Authority from time to time; or (ii) any
“recognised investment exchange” as recognised by the FCA
under Part XVIII of FSMA; or (iii) any “recognised overseas
investment exchange” as recognised by the FCA under Part XVIII
of FSMA; or
(b) any unit, share or other security issued by a collective
investment scheme that has been authorised and regulated by
the FCA and which has trading on a monthly or more frequent
basis,
in each case being investments intended to bene t
stakeholders using ESG frameworks to ensure a variety of
stakeholders beyond just shareholders’ interests are addressed.
Depositary
J.P. Morgan Europe Limited, which is authorised by the Prudential
Regulation Authority and regulated by the FCA and the Prudential
Regulation Authority, carries out certain duties of a depositary
speci ed in the AIFM Directive including, in relation to the
Company:
– safekeeping of the assets of the Company which are entrusted
to it;
– cash monitoring; and
– oversight of the Company and the Manager to the extent
described in the AIFM Directive.
The depositary is liable to the Company for losses su ered by it as
aQresult of any negligence, wilful default, fraud or fraudulent
misrepresentation on its part.
The Company, the Manager and JPM Bank may terminate the
depositary agreement at any time by giving 90 days’ notice in
writing. J.P. Morgan Europe Limited may only be removed from
o?ce when a new depositary is appointed by the Company.
This service was provided by HSBC Bank plc until 30 September
2025.
Registrar
Equiniti Limited (“Equiniti”) is the Company’s registrar. Equiniti’s
services to the Company include share register maintenance
(including the issuance, transfer and cancellation of shares as
necessary), acting as agent for the payment of dividends,
management of general meetings (including the registering of
proxy votes and scrutineer services as necessary), handling
shareholder correspondence and processing corporate actions.
Corporate Governance Statement
The Financial Conduct Authority requires all UK listed companies
to disclose how they have applied the principles and complied
with the provisions of the UK Corporate Governance Code 2024
(the “UK Code”) issued by the Financial Reporting Council (“FRC”).
The Board of the Company has considered the principles and
provisions of the AIC Code of Corporate Governance (“AIC Code”).
The AIC Code addresses the Principles and Provisions set out in
the UK Code, as well as setting out speci c Provisions on issues
that are of relevance to the Company as an investment company.
The Board considers that reporting against the Principles and
Provisions of the AIC Code, which has been endorsed by the FRC,
provides more relevant information to shareholders.
The AIC Code is available on the AIC website at:
https://www.theaic.co.uk/aic-code-of-corporate-governance. It
includes an explanation of how the AIC Code adopts the
Principles and Provisions set out in the UK Code to make them
relevant for investment companies. The UK Code is available from
the FRC’s website at: www.frc.org.uk.
The Board is satis ed that the Company’s current governance
framework is compliant with the AIC Code with the exceptions of
forming a remuneration committee and the appointment of a
Senior Independent Director. Considering the Company has no
chief executive or other executive directors, the size of the Board
and the infrequent nature at which it is expected that directors’
fees will need to be changed, the Board believes that a separate
committee responsible for reviewing and determining fees is not
necessary at the moment but will be kept under review. As
permitted under the AIC Code, the Chair is aQmember of the Audit
and Risk Committee. An explanation as to why this is considered
appropriate is set out in the Audit and Risk Committee Report on
page 46.
The Board has also determined that given its size, it is appropriate
that all directors are members of the Audit and Risk, Management
Engagement and Nomination committees and that the
appointment of aQSenior Independent Director is not considered
necessary. However, the Chair of the Audit and Risk Committee
e ectively acts as the Senior Independent Director, leads the
evaluation of the performance of the Chair and is available to
directors and/or shareholders if they have concerns which cannot
be resolved through discussion with the Chair.
As all of the Company’s day-to-day management and
administrative functions are outsourced to third parties, it has no
executive directors, employees or internal operations and
therefore has not reported in respect of the following UK Code
Provisions:
• the role of the executive directors and senior management;
• the need for an internal audit function; and
• executive directors’ remuneration.
Revenue and interim dividend
The net revenue return for the year under review, after nance
costs and taxation, was £3,404,000 (2024: £2,650,000), equivalent
to a revenue return per ordinary share of 4.15p (2024: 3.16p). As
stated in the Company’s prospectus, the Company will use the
investment trust interest streaming regime. This enables an
investment trust which receives “qualifying interest income” to
treat the whole or part of aQdividend distribution as an interest
distribution. The e ect of streaming is to move the point of
taxation in respect of the Company’s qualifying interest income,
from the Company to its investors and the Company may treat
the streamed payment as aQloan relationship deduction in its tax
computation.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
44
Section 2: Governance
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
For investors within the charge to UK corporation tax, the
distribution will be taxed in the normal way as interest under
aQcreditor relationship. For UK income taxpayers it will be taxed
asQinterest received on the date the distribution was made.
The Board has declared the payment of an interim dividend made
up wholly of an interest distribution of 3.76p per share payable on
19QDecember 2025 to shareholders on the register on
14QNovember 2025. The ex-dividend date isQ13 November 2025.
The Board’s policy is to pay out substantially all the Company’s
normal revenue. The Company may be required to pay a second
dividend distribution in respect of the year ended 30 June 2025, in
order to comply with the investment trust qualifying rules in
section 1158 of the Corporation Tax Act 2010. The income
retention test in section 1158 is based on income receivable in
the corporation tax computation, and income receivable from the
Company’s holdings in limited partnerships will be taxed on a
“look through” basis, sourced from accounting information which
may not be available until after the year end.
Committees
In order to ful l its governance responsibilities, the Board has
delegated certain functions to committees. The roles and
responsibilities of these committees, together with details of work
undertaken during the year under review, are outlined in the next
few pages.
The reports of the Audit and Risk, Management Engagement and
Nomination committees are incorporated into and form part of
the Directors’ Report.
Other required Directors’ Report disclosures under
laws, regulations, and the UK Code
Status
The Company has been incorporated with an unlimited life. The
Company carries on business as an investment trust. Its shares
are listed and admitted to trading on the main market of the
London Stock Exchange. It has been approved by HMQRevenue &
Customs as an investment trust in accordance with section 1158
of the Corporation Tax Act 2010, by way of a one-o application
and it is intended that the Company will continue to conduct its
a airs in aQmanner which will enable it to retain this status.
The Company is not a “close” company for taxation purposes.
The Company is domiciled in the UK and is an investment
company within the meaning of section 833 of the Companies
ActQ2006.
If in the two-year period ending on 31 December 2024, and in any
two-year period following such date, the Ordinary Shares have
traded, on average, at a discount in excess of 10% to Net Asset
Value per Share, the directors will propose an ordinary resolution
at the Company’s next AGM that the Company continues its
business as presently constituted (the “Continuation Resolution”).
If the Continuation Resolution is not passed, the directors will put
forward proposals for the reconstruction or reorganisation of the
Company, bearing in mind the liquidity of the Company’s
Investments, as soon as reasonably practicable following the date
on which the Continuation Resolution is not passed. These
proposals may or may not involve winding up the Company and,
accordingly, failure to pass the Continuation Resolution will not
necessarily result in the winding up of the Company.
The current period under assessment is the two-year period to
31QDecember 2025. In the event that a vote was triggered
shareholders would be provided with the opportunity to vote on
whether the Company should continue in its present form at the
AGM in 2026. Given the average discount of 22.8% from 1 January
2024 to the date of this report, a vote will likely be triggered.
The discount prevailing on each business day will be determined
by reference to the closing market price of Ordinary Shares on
that day and the last announced Net Asset Value per Share
(adjusted for dividends).
Information included in Strategic Report
The Company’s disclosures on future developments, engagement
with suppliers, customers and others in a business relationship
with the company, culture, and carbon emissions are included in
the Strategic Report.
Financial risk management
Details of the Company’s nancial risk management objectives
and exposure to risk can be found in note 21 on pages 76 to 79.
Share capital
Details of the Company’s issued share capital are given in note 13
to the nancial statements on page 73. Details of the voting rights
in the Company’s shares as at 28 October 2025 are given in note
7 to the Notice of AGM on page 86.
The ordinary shares carry the right to receive dividends and have
one voting right per ordinary share. There are no restrictions on
the voting rights of the ordinary shares or on the transfer of the
ordinary shares. There are no shares which carry speci c rights
with regard to the control of the Company. At 30 June 2025, the
Company’s issued share capital was 81,102,939 ordinary shares,
excluding 4,213,647 shares held in treasury.
Share repurchases
The Company has authority to purchase its ordinary shares in the
market to be held in treasury or for cancellation. During the year
the Company bought back 1,926,722 ordinary shares and since
the year end and up to 28 October 2025, a further 1,547,413
ordinary shares have been repurchased.
The latest buyback authority was granted to directors on
18QDecember 2024 and expires at the conclusion of the AGM on
17 December 2025. The directors are proposing that their
authority to buy back shares be renewed at the forthcoming AGM.
Substantial share interests
The Company has received noti cations in accordance with the
Financial Conduct Authority’s (“FCA”) Disclosure Guidance and
Transparency Rule 5.1.2R of the below interests in 3% or more of
the voting rights attaching to the Company’s issued share capital.
The Company is reliant on investors to comply with these
regulations, and certain investors may be exempted from
providing these. As such, this should not be relied on as an
exhaustive list of shareholders holding above 3% or more of the
Company’s voting rights.
44
Section 2: Governance
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
For investors within the charge to UK corporation tax, the
distribution will be taxed in the normal way as interest under
aQcreditor relationship. For UK income taxpayers it will be taxed
asQinterest received on the date the distribution was made.
The Board has declared the payment of an interim dividend made
up wholly of an interest distribution of 3.76p per share payable on
19QDecember 2025 to shareholders on the register on
14QNovember 2025. The ex-dividend date isQ13 November 2025.
The Board’s policy is to pay out substantially all the Company’s
normal revenue. The Company may be required to pay a second
dividend distribution in respect of the year ended 30 June 2025, in
order to comply with the investment trust qualifying rules in
section 1158 of the Corporation Tax Act 2010. The income
retention test in section 1158 is based on income receivable in
the corporation tax computation, and income receivable from the
Company’s holdings in limited partnerships will be taxed on a
“look through” basis, sourced from accounting information which
may not be available until after the year end.
Committees
In order to ful l its governance responsibilities, the Board has
delegated certain functions to committees. The roles and
responsibilities of these committees, together with details of work
undertaken during the year under review, are outlined in the next
few pages.
The reports of the Audit and Risk, Management Engagement and
Nomination committees are incorporated into and form part of
the Directors’ Report.
Other required Directors’ Report disclosures under
laws, regulations, and the UK Code
Status
The Company has been incorporated with an unlimited life. The
Company carries on business as an investment trust. Its shares
are listed and admitted to trading on the main market of the
London Stock Exchange. It has been approved by HMQRevenue &
Customs as an investment trust in accordance with section 1158
of the Corporation Tax Act 2010, by way of a one-o application
and it is intended that the Company will continue to conduct its
a airs in aQmanner which will enable it to retain this status.
The Company is not a “close” company for taxation purposes.
The Company is domiciled in the UK and is an investment
company within the meaning of section 833 of the Companies
ActQ2006.
If in the two-year period ending on 31 December 2024, and in any
two-year period following such date, the Ordinary Shares have
traded, on average, at a discount in excess of 10% to Net Asset
Value per Share, the directors will propose an ordinary resolution
at the Company’s next AGM that the Company continues its
business as presently constituted (the “Continuation Resolution”).
If the Continuation Resolution is not passed, the directors will put
forward proposals for the reconstruction or reorganisation of the
Company, bearing in mind the liquidity of the Company’s
Investments, as soon as reasonably practicable following the date
on which the Continuation Resolution is not passed. These
proposals may or may not involve winding up the Company and,
accordingly, failure to pass the Continuation Resolution will not
necessarily result in the winding up of the Company.
The current period under assessment is the two-year period to
31QDecember 2025. In the event that a vote was triggered
shareholders would be provided with the opportunity to vote on
whether the Company should continue in its present form at the
AGM in 2026. Given the average discount of 22.8% from 1 January
2024 to the date of this report, a vote will likely be triggered.
The discount prevailing on each business day will be determined
by reference to the closing market price of Ordinary Shares on
that day and the last announced Net Asset Value per Share
(adjusted for dividends).
Information included in Strategic Report
The Company’s disclosures on future developments, engagement
with suppliers, customers and others in a business relationship
with the company, culture, and carbon emissions are included in
the Strategic Report.
Financial risk management
Details of the Company’s nancial risk management objectives
and exposure to risk can be found in note 21 on pages 76 to 79.
Share capital
Details of the Company’s issued share capital are given in note 13
to the nancial statements on page 73. Details of the voting rights
in the Company’s shares as at 28 October 2025 are given in note
7 to the Notice of AGM on page 86.
The ordinary shares carry the right to receive dividends and have
one voting right per ordinary share. There are no restrictions on
the voting rights of the ordinary shares or on the transfer of the
ordinary shares. There are no shares which carry speci c rights
with regard to the control of the Company. At 30 June 2025, the
Company’s issued share capital was 81,102,939 ordinary shares,
excluding 4,213,647 shares held in treasury.
Share repurchases
The Company has authority to purchase its ordinary shares in the
market to be held in treasury or for cancellation. During the year
the Company bought back 1,926,722 ordinary shares and since
the year end and up to 28 October 2025, a further 1,547,413
ordinary shares have been repurchased.
The latest buyback authority was granted to directors on
18QDecember 2024 and expires at the conclusion of the AGM on
17 December 2025. The directors are proposing that their
authority to buy back shares be renewed at the forthcoming AGM.
Substantial share interests
The Company has received noti cations in accordance with the
Financial Conduct Authority’s (“FCA”) Disclosure Guidance and
Transparency Rule 5.1.2R of the below interests in 3% or more of
the voting rights attaching to the Company’s issued share capital.
The Company is reliant on investors to comply with these
regulations, and certain investors may be exempted from
providing these. As such, this should not be relied on as an
exhaustive list of shareholders holding above 3% or more of the
Company’s voting rights.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
45
Section 2: Governance
Latest noti cations received
as at 30 June 2025
Number % of total
of shares voting rights
Better Society Capital Limited 22,425,000 27.01%
Schroders plc
1
13,869,362 16.93%
East Riding of Yorkshire Council 2
7,500,000 10.00%
EQ Investors Limited 4,589,341 5.48%
Ru er LLP 4,177,011 5.05%
Newton Investment Management Limited 4,215,408 4.96%
Stichting Juridisch Eigendom Privium Sustainable Impact Fund 4,000,000 4.69%
1
12.37% of the holding is held by clients of Cazenove Capital Management.
2
Noti cation based on an issued share capital of 75,000,000 shares and received prior to the increase in share capital in November 2021.
The Company also received a noti cation on 5 August 2021 from Pentwater Capital Management LP for a holding of 3,550,000 shares
and 4.73% of total voting rights. Based on information received, the Company believes that Pentwater Capital Management LP is no
longer a shareholder of the Company.
Since the year end and as at the date of the notice of AGM, the Company has received a noti cation on 1 September 2025 from Better
Society Capital for a holding of 22,425,000 shares and 28.01% of total voting rights. On 10 September 2025, Stichting Juridisch
Eigendom Privium Sustainable Impact Fund noti ed the Company of its holding of 4,000,000 shares and 5.00% of total voting rights.
These changes resulted from Company share buybacks which altered the percentage level of these investors’ holdings.
Provision of information to the auditor
The directors at the date of approval of this report con rm that, so far as each of them is aware, there is no relevant audit information
of which the Company’s auditor is unaware; and each director has taken all the steps that he or she ought to have taken as a director in
order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that
information.
Directors’ attendance at meetings
The number of scheduled meetings of the Board and its committees held during the year under review and the attendance of
individual directors is shown below. Whenever possible all directors attend the AGM.
Audit and Risk 2 Management Engagement 2 Nomination
Director2 Board2 Committee Committee Committee
Susannah Nicklin 5/5 2/2 1/1 1/1
Mike Balfour 1
3/3 1/1 0/0 0/0
James B. Broderick 5/5 2/2 1/1 1/1
Alice Chapple 5/5 2/2 1/1 1/1
Ranjan Ramparia 2
4/5 2/2 1/1 1/1
1
Mike Balfour retired as a director on 18 December 2024.
2
Ranjan Ramparia was appointed as a director on 16 October 2024 and Chair of the Audit and Risk Committee on 18 December 2024.
The Board and committees meet more frequently, between scheduled meetings, when business needs require.
Directors’ and o&cers’ liability insurance and indemnities
Directors’ and o?cers’ liability insurance cover was in place for the directors throughout the year. The Company’s articles of association
provide, subject to the provisions of the Companies Act 2006, an indemnity for directors in respect of costs which they may incur
relating to the defence of any judgement that is given in their favour by the court. This is a qualifying third party indemnity policy and
was in place throughout the year under review for each director and to the date of this report.
By order of the Board
Schroder Investment Management Limited
Company Secretary
28 October 2025
Section 2: Governance
Latest noti cations received
as at 30 June 2025
Number % of total
of shares voting rights
Better Society Capital Limited 22,425,000 27.01%
Schroders plc
1
13,869,362 16.93%
East Riding of Yorkshire Council 2
7,500,000 10.00%
EQ Investors Limited 4,589,341 5.48%
Ru er LLP 4,177,011 5.05%
Newton Investment Management Limited 4,215,408 4.96%
Stichting Juridisch Eigendom Privium Sustainable Impact Fund 4,000,000 4.69%
1
12.37% of the holding is held by clients of Cazenove Capital Management.
2
Noti cation based on an issued share capital of 75,000,000 shares and received prior to the increase in share capital in November 2021.
The Company also received a noti cation on 5 August 2021 from Pentwater Capital Management LP for a holding of 3,550,000 shares
and 4.73% of total voting rights. Based on information received, the Company believes that Pentwater Capital Management LP is no
longer a shareholder of the Company.
Since the year end and as at the date of the notice of AGM, the Company has received a noti cation on 1 September 2025 from Better
Society Capital for a holding of 22,425,000 shares and 28.01% of total voting rights. On 10 September 2025, Stichting Juridisch
Eigendom Privium Sustainable Impact Fund noti ed the Company of its holding of 4,000,000 shares and 5.00% of total voting rights.
These changes resulted from Company share buybacks which altered the percentage level of these investors’ holdings.
Provision of information to the auditor
The directors at the date of approval of this report con rm that, so far as each of them is aware, there is no relevant audit information
of which the Company’s auditor is unaware; and each director has taken all the steps that he or she ought to have taken as a director in
order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that
information.
Directors’ attendance at meetings
The number of scheduled meetings of the Board and its committees held during the year under review and the attendance of
individual directors is shown below. Whenever possible all directors attend the AGM.
Audit and Risk 2 Management Engagement 2 Nomination
Director2 Board2 Committee Committee Committee
Susannah Nicklin 5/5 2/2 1/1 1/1
Mike Balfour 1
3/3 1/1 0/0 0/0
James B. Broderick 5/5 2/2 1/1 1/1
Alice Chapple 5/5 2/2 1/1 1/1
Ranjan Ramparia 2
4/5 2/2 1/1 1/1
1
Mike Balfour retired as a director on 18 December 2024.
2
Ranjan Ramparia was appointed as a director on 16 October 2024 and Chair of the Audit and Risk Committee on 18 December 2024.
The Board and committees meet more frequently, between scheduled meetings, when business needs require.
Directors’ and o&cers’ liability insurance and indemnities
Directors’ and o?cers’ liability insurance cover was in place for the directors throughout the year. The Company’s articles of association
provide, subject to the provisions of the Companies Act 2006, an indemnity for directors in respect of costs which they may incur
relating to the defence of any judgement that is given in their favour by the court. This is a qualifying third party indemnity policy and
was in place throughout the year under review for each director and to the date of this report.
By order of the Board
Schroder Investment Management Limited
Company Secretary
28 October 2025
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
46
Section 2: Governance
Audit and Risk Committee Report
Ongoing risk review
All directors are members of the Committee. Ranjan Ramparia is the chair of the Committee. The AIC Code permits the Chair of the
Board to be aQmember of the audit committee of an investment trust. Recognising Susannah Nicklin’s signi cant experience, the
Committee considered it appropriate for the independent non-executive Chair to be a member of the Audit and Risk Committee. The
Board has satis ed itself that at least one of the Committee’s members has recent and relevant nancial experience and that the
Committee as a whole has competence relevant to the sector in which the Company operates. The Committee’s e ectiveness was
assessed, and considered to be satisfactory, as part of the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Risk management and internal
controls
Principal and emerging risks and
uncertainties
To establish and maintain a framework for
identifying, assessing, managing and
monitoring the Company’s emerging and
principal risks and uncertainties and
identifying how these are being managed
or mitigated.
Internal controls
To keep under review the adequacy and
e ectiveness of the Company’s framework
of internal control and risk management,
and review the annual report disclosures
relating to this.
To monitor the Company’s accounting and
nancial internal control framework.
To consider the need and appropriateness
for having an internal auditor, given the
Company outsources substantially all of its
functions to third parties.
Financial reports and valuation
Financial statements
To monitor the integrity of the nancial
statements of the Company and any
formal announcements relating to the
Company’s nancial performance and
valuation. To review the annual and half
year reports.
An explanation of the Company’s
accounting policies can be found at note 1
of the nancial statements on pages 67 to
69.
Going concern and viability
To review the capital and liquidity position
of the Company and make
recommendations to the Board in relation
to whether it considers it appropriate to
adopt the going concern basis of
accounting in preparing its annual and
half-yearly report and accounts.
The Committee is also responsible for
reviewing the disclosures made in the
viability statement.
Audit
Audit results
To discuss any matters arising from the
audit and consider recommendations
made by the auditor.
Auditor appointment, independence
and performance
To make recommendations to the Board,
inQrelation to the appointment,
re-appointment, e ectiveness and removal
of the external auditor together with any
non-audit services. To review auditor
independence, and to approve their
remuneration and terms of engagement.
To review the audit plan and engagement
letter.
In relation to these matters, the
Committee will take into consideration
provisions of the Audit Committees and
the External Audit: Minimum Standard.
Review of external
auditor
Half year
report
Audit
planning
Audit Annual
Report
The responsibilities and work carried out by the Audit and Risk Committee during the year
under review are set out in the following report. The duties and responsibilities of the
Committee, which include monitoring the integrity of the Company’s financial reporting and
internal controls, are set out in further detail, and may be found in the terms of reference
which are set out on the Company’s website at: www.schroders.com/sbsi.
46
Section 2: Governance
Audit and Risk Committee Report
Ongoing risk review
All directors are members of the Committee. Ranjan Ramparia is the chair of the Committee. The AIC Code permits the Chair of the
Board to be aQmember of the audit committee of an investment trust. Recognising Susannah Nicklin’s signi cant experience, the
Committee considered it appropriate for the independent non-executive Chair to be a member of the Audit and Risk Committee. The
Board has satis ed itself that at least one of the Committee’s members has recent and relevant nancial experience and that the
Committee as a whole has competence relevant to the sector in which the Company operates. The Committee’s e ectiveness was
assessed, and considered to be satisfactory, as part of the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Risk management and internal
controls
Principal and emerging risks and
uncertainties
To establish and maintain a framework for
identifying, assessing, managing and
monitoring the Company’s emerging and
principal risks and uncertainties and
identifying how these are being managed
or mitigated.
Internal controls
To keep under review the adequacy and
e ectiveness of the Company’s framework
of internal control and risk management,
and review the annual report disclosures
relating to this.
To monitor the Company’s accounting and
nancial internal control framework.
To consider the need and appropriateness
for having an internal auditor, given the
Company outsources substantially all of its
functions to third parties.
Financial reports and valuation
Financial statements
To monitor the integrity of the nancial
statements of the Company and any
formal announcements relating to the
Company’s nancial performance and
valuation. To review the annual and half
year reports.
An explanation of the Company’s
accounting policies can be found at note 1
of the nancial statements on pages 67 to
69.
Going concern and viability
To review the capital and liquidity position
of the Company and make
recommendations to the Board in relation
to whether it considers it appropriate to
adopt the going concern basis of
accounting in preparing its annual and
half-yearly report and accounts.
The Committee is also responsible for
reviewing the disclosures made in the
viability statement.
Audit
Audit results
To discuss any matters arising from the
audit and consider recommendations
made by the auditor.
Auditor appointment, independence
and performance
To make recommendations to the Board,
inQrelation to the appointment,
re-appointment, e ectiveness and removal
of the external auditor together with any
non-audit services. To review auditor
independence, and to approve their
remuneration and terms of engagement.
To review the audit plan and engagement
letter.
In relation to these matters, the
Committee will take into consideration
provisions of the Audit Committees and
the External Audit: Minimum Standard.
Review of external
auditor
Half year
report
Audit
planning
Audit Annual
Report
The responsibilities and work carried out by the Audit and Risk Committee during the year
under review are set out in the following report. The duties and responsibilities of the
Committee, which include monitoring the integrity of the Company’s financial reporting and
internal controls, are set out in further detail, and may be found in the terms of reference
which are set out on the Company’s website at: www.schroders.com/sbsi.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
47
Section 2: Governance
Application during the year
The following table sets out how the Committee discharged its duties during the year. The Committee met twice during the year under
review. Further details on attendance can be found on page 45. In addition, an evaluation of the Committee's e ectiveness and review
of its terms of reference were also completed during the year.
Signi cant issues identi ed during the year under review and key matters communicated by the auditor during the audit are included
below.
Risk management and internal
controls
Principal and emerging risks and
uncertainties
The Committee reviewed the principal and
emerging risks faced by the Company
together with the systems, processes and
oversight in place to manage and mitigate
the risks.
Internal controls
The Committee considered several key
aspects of the internal control
environments operating within the
Manager, Portfolio Manager, depositary
and registrar, including attestations,
assurance reports and presentations on
these controls.
The Committee reviewed the operational
controls reports provided by the Manager,
depositary and custodian and registrar
and received quarterly reports covering
the operations of the service providers.
Following a review of the Company’s risk
management and internal control
framework, the Committee noted that
these remain e ective as at the end of the
nancial year ended 30 June 2025.
Financial reports and valuation
Valuation and existence of holdings
The Company’s accounting policy for
valuing unquoted investments is set out in
note 1 on pages 67 to 69 of the notes to
the nancial statements.
The Committee reviewed the valuations
taking account of the latest available
information about the Company’s
investments and the Portfolio Manager’s
knowledge of the underlying investments.
The auditor also attended the Portfolio
Manager’s valuation committee meetings.
Accounting policies and judgements
Consideration of the accounting policies
used in preparing the accounts of the
Company.
The management fee is calculated in
accordance with the contractual terms
contained in the AIFM agreement.
The Committee reviewed the calculation of
the management fee.
Audit
Meetings with the auditor
The Committee met the auditor without
representatives of the Manager and the
Portfolio Manager present.
Representatives of the auditor attended
the committee meeting at which the draft
annual report and nancial statements
were considered and presented a report
on the ndings of the audit.
The Committee also evaluated the
e ectiveness of the auditor prior to
making a recommendation that it should
be re-appointed at the forthcoming AGM.
This included consideration of the
auditor’s knowledge, expertise, resources
and process, alongside feedback from the
Manager on the audit process.
Professional scepticism of the auditor was
questioned and the committee was
satis ed with the auditor’s replies.
In July 2025 the FRC published its annual
assessment of quality among the Tier 1
audit rms. Our external auditor, BDO is
one of the six Tier 1 audit rms, and was
therefore subject to a review by the FRC’s
Audit Quality Review team. The FRC’s
report identi ed a number of areas for
improvement for the auditor but noted
improvements in the Financial Services
practice and commented upon improved
results in its internal quality monitoring.
The Committee discussed the FRC’s
ndings along with the auditor’s action
plan in detail with BDO. BDO have
con rmed that they are committed to the
highest standards of audit quality and will
continue to work closely with the FRC to
address any areas of concern.
The Committee will continue to monitor
auditor’s progress.
Section 2: Governance
Application during the year
The following table sets out how the Committee discharged its duties during the year. The Committee met twice during the year under
review. Further details on attendance can be found on page 45. In addition, an evaluation of the Committee's e ectiveness and review
of its terms of reference were also completed during the year.
Signi cant issues identi ed during the year under review and key matters communicated by the auditor during the audit are included
below.
Risk management and internal
controls
Principal and emerging risks and
uncertainties
The Committee reviewed the principal and
emerging risks faced by the Company
together with the systems, processes and
oversight in place to manage and mitigate
the risks.
Internal controls
The Committee considered several key
aspects of the internal control
environments operating within the
Manager, Portfolio Manager, depositary
and registrar, including attestations,
assurance reports and presentations on
these controls.
The Committee reviewed the operational
controls reports provided by the Manager,
depositary and custodian and registrar
and received quarterly reports covering
the operations of the service providers.
Following a review of the Company’s risk
management and internal control
framework, the Committee noted that
these remain e ective as at the end of the
nancial year ended 30 June 2025.
Financial reports and valuation
Valuation and existence of holdings
The Company’s accounting policy for
valuing unquoted investments is set out in
note 1 on pages 67 to 69 of the notes to
the nancial statements.
The Committee reviewed the valuations
taking account of the latest available
information about the Company’s
investments and the Portfolio Manager’s
knowledge of the underlying investments.
The auditor also attended the Portfolio
Manager’s valuation committee meetings.
Accounting policies and judgements
Consideration of the accounting policies
used in preparing the accounts of the
Company.
The management fee is calculated in
accordance with the contractual terms
contained in the AIFM agreement.
The Committee reviewed the calculation of
the management fee.
Audit
Meetings with the auditor
The Committee met the auditor without
representatives of the Manager and the
Portfolio Manager present.
Representatives of the auditor attended
the committee meeting at which the draft
annual report and nancial statements
were considered and presented a report
on the ndings of the audit.
The Committee also evaluated the
e ectiveness of the auditor prior to
making a recommendation that it should
be re-appointed at the forthcoming AGM.
This included consideration of the
auditor’s knowledge, expertise, resources
and process, alongside feedback from the
Manager on the audit process.
Professional scepticism of the auditor was
questioned and the committee was
satis ed with the auditor’s replies.
In July 2025 the FRC published its annual
assessment of quality among the Tier 1
audit rms. Our external auditor, BDO is
one of the six Tier 1 audit rms, and was
therefore subject to a review by the FRC’s
Audit Quality Review team. The FRC’s
report identi ed a number of areas for
improvement for the auditor but noted
improvements in the Financial Services
practice and commented upon improved
results in its internal quality monitoring.
The Committee discussed the FRC’s
ndings along with the auditor’s action
plan in detail with BDO. BDO have
con rmed that they are committed to the
highest standards of audit quality and will
continue to work closely with the FRC to
address any areas of concern.
The Committee will continue to monitor
auditor’s progress.
Risk management and internal
controls
Compliance with the investment trust
qualifying rules in S1158 of the
Corporation Tax Act 2010
The Committee considered of the
Manager’s report con rming compliance.
Financial reports and valuation
Overall accuracy of the report and
nancial statements
The Committee considered the draft
annual report and nancial statements
and the letters of comfort from the
Manager and Portfolio Manager in support
of the letter of representation to the
auditor.
Fair, balanced and understandable
The Committee reviewed the draft annual
report and nancial statements to advise
the Board whether it was fair, balanced
and understandable.
Going concern and viability
The Committee reviewed the impact of
risks and uncertainties on going concern
and longer-term viability, as described
further on page 37.
Audit
Auditor independence
On 16 October 2020, BDO LLP was
appointed as auditor to the Company.
ThisQis the fth year that BDO LLP will be
undertaking the Company’s audit.
The auditor is required to rotate the senior
statutory auditor every ve years. This is
the rst year that the senior statutory
auditor, Daniel Quiligotti has conducted
the audit of the Company’s annual report
and nancial statements.
There are no contractual obligations
restricting the choice of external auditor.
The next tender is expected to take place
inQ2030.
The Committee received con rmation
fromQthe auditor that they remained
independent and that it had implemented
policies and procedures to meet the
requirements of the Auditing Practices
Board’s Ethical Standards.
Audit results
The Committee met with and reviewed
aQcomprehensive report from the auditor
which detailed: the results of the audit,
compliance with regulatory requirements,
safeguards that have been established
and their own internal quality control
procedures.
Provision of non-audit services by the
Auditor
The Committee has reviewed the FRC’s
Guidance on Audit Committees and the
External Audit: Minimum Standard and has
formulated aQpolicy on the provision of
non-audit services by the Company’s
auditor.
The Committee has determined that the
Company’s appointed auditor will not be
considered for the provision of certain
non-audit services, such as accounting and
preparation of the nancial statements,
internal audit and custody. The auditor
may, if required, provide other non-audit
services which will be judged on a case-by-
case basis. No non-audit services were
provided for the year under review.
Consent to continue as Auditor
BDO LLP indicated to the Committee their
willingness to continue to act as auditor.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
48
Section 2: Governance
controls
Compliance with the investment trust
qualifying rules in S1158 of the
Corporation Tax Act 2010
The Committee considered of the
Manager’s report con rming compliance.
Financial reports and valuation
Overall accuracy of the report and
nancial statements
The Committee considered the draft
annual report and nancial statements
and the letters of comfort from the
Manager and Portfolio Manager in support
of the letter of representation to the
auditor.
Fair, balanced and understandable
The Committee reviewed the draft annual
report and nancial statements to advise
the Board whether it was fair, balanced
and understandable.
Going concern and viability
The Committee reviewed the impact of
risks and uncertainties on going concern
and longer-term viability, as described
further on page 37.
Audit
Auditor independence
On 16 October 2020, BDO LLP was
appointed as auditor to the Company.
ThisQis the fth year that BDO LLP will be
undertaking the Company’s audit.
The auditor is required to rotate the senior
statutory auditor every ve years. This is
the rst year that the senior statutory
auditor, Daniel Quiligotti has conducted
the audit of the Company’s annual report
and nancial statements.
There are no contractual obligations
restricting the choice of external auditor.
The next tender is expected to take place
inQ2030.
The Committee received con rmation
fromQthe auditor that they remained
independent and that it had implemented
policies and procedures to meet the
requirements of the Auditing Practices
Board’s Ethical Standards.
Audit results
The Committee met with and reviewed
aQcomprehensive report from the auditor
which detailed: the results of the audit,
compliance with regulatory requirements,
safeguards that have been established
and their own internal quality control
procedures.
Provision of non-audit services by the
Auditor
The Committee has reviewed the FRC’s
Guidance on Audit Committees and the
External Audit: Minimum Standard and has
formulated aQpolicy on the provision of
non-audit services by the Company’s
auditor.
The Committee has determined that the
Company’s appointed auditor will not be
considered for the provision of certain
non-audit services, such as accounting and
preparation of the nancial statements,
internal audit and custody. The auditor
may, if required, provide other non-audit
services which will be judged on a case-by-
case basis. No non-audit services were
provided for the year under review.
Consent to continue as Auditor
BDO LLP indicated to the Committee their
willingness to continue to act as auditor.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
48
Section 2: Governance
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
49
Section 2: Governance
Recommendations made to, and approved by, the Board:
As a result of the work performed, the Committee concluded that the Annual Report and Financial Statements for the year ended
30QJune 2025, taken as aQwhole, is fair, balanced and understandable and provides the information necessary for shareholders to assess
the Company’s position, performance, business model and strategy, and has reported on these ndings to the Board. The Board’s
conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 56.
The Committee recommended that the Board approve the Annual Report and Financial Statements.
The Committee recommended that the Annual Report and Financial Statements and the half year report be prepared on a going
concern basis in accordance with the explanations set out in the respective going concern and viability statements.
Having reviewed the performance of the auditor and discussed the FRC’s ndings with the auditor as described above, the Committee
considered it appropriate to recommend the rm’s re-appointment. Resolutions to re-appoint BDO LLP as auditor to the Company, and
to authorise the directors to determine their remuneration will be proposed at the AGM.
By order of the Board
Ranjan Ramparia
Audit and Risk Committee chair
28 October 2025
Section 2: Governance
Recommendations made to, and approved by, the Board:
As a result of the work performed, the Committee concluded that the Annual Report and Financial Statements for the year ended
30QJune 2025, taken as aQwhole, is fair, balanced and understandable and provides the information necessary for shareholders to assess
the Company’s position, performance, business model and strategy, and has reported on these ndings to the Board. The Board’s
conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 56.
The Committee recommended that the Board approve the Annual Report and Financial Statements.
The Committee recommended that the Annual Report and Financial Statements and the half year report be prepared on a going
concern basis in accordance with the explanations set out in the respective going concern and viability statements.
Having reviewed the performance of the auditor and discussed the FRC’s ndings with the auditor as described above, the Committee
considered it appropriate to recommend the rm’s re-appointment. Resolutions to re-appoint BDO LLP as auditor to the Company, and
to authorise the directors to determine their remuneration will be proposed at the AGM.
By order of the Board
Ranjan Ramparia
Audit and Risk Committee chair
28 October 2025
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
50
Section 2: Governance
Management Engagement Committee Report
All directors are members of the Committee. James B. Broderick is the chair of the Committee. The Committee’s terms of reference are
available on the Company’s website at: www.schroders.com/sbsi. The Committee’s e ectiveness was assessed, and judged to be
satisfactory, as part of the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Application during the year
Recommendations made to, and approved by, the Board:
• That the ongoing appointment of the Manager and Portfolio Manager on the terms of their agreements with the Company, including
fees, was in the best interests of shareholders as a whole.
• That the Company’s service providers’ performance remained satisfactory.
James B. Broderick
Management Engagement Committee chair
28 October 2025
Oversight of the Manager and the Portfolio Manager
The Committee:
• reviews the Portfolio Manager’s performance, over the short and
long term, against the Company’s target investment return, peer
group and the market and considers the social impact
performance of investments made on behalf of the Company.
• considers the reporting it has received from the Manager and
Portfolio Manager throughout the year.
• reviews the appropriateness of the Manager’s and Portfolio
Manager’s agreements, including terms such as fee structures
and notice periods.
• assesses whether the Company receives appropriate
administrative, accounting, company secretarial and marketing
support from the Manager.
Oversight of other service providers
The Committee reviews the performance and competitiveness of
the following service providers on at least an annual basis:
• depositary and custodian;
• corporate broker; and
• registrar.
The Committee also receives a report from the Company
Secretary on ancillary service providers, and considers
anyQrecommendations.
The Committee notes the Audit and Risk Committee’s review of
theQauditor.
The Committee undertook a detailed review of the Portfolio
Manager’s performance and agreed that it has the appropriate
depth and quality of resource to deliver impact and nancial
returns in line with the Company’s target over the longer term.
The Committee also reviewed the terms of the AIFM and portfolio
management agreements and agreed they remained t for
purpose.
The Committee reviewed the other services provided by the
Manager and agreed they were satisfactory.
The annual review of each of the service providers was
satisfactory.
The Committee noted that the Audit and Risk Committee had
undertaken a detailed evaluation of the internal control
environments of the Manager, Portfolio Manager, registrar, and
depositary and custodian.
The Management Engagement Committee is responsible for: (1) the monitoring and
oversight of the Manager’s and Portfolio Manager’s performance and fees, and confirming
their ongoing suitability; and (2) reviewing and assessing the Company’s other service
providers, including reviewing their fees.
50
Section 2: Governance
Management Engagement Committee Report
All directors are members of the Committee. James B. Broderick is the chair of the Committee. The Committee’s terms of reference are
available on the Company’s website at: www.schroders.com/sbsi. The Committee’s e ectiveness was assessed, and judged to be
satisfactory, as part of the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Application during the year
Recommendations made to, and approved by, the Board:
• That the ongoing appointment of the Manager and Portfolio Manager on the terms of their agreements with the Company, including
fees, was in the best interests of shareholders as a whole.
• That the Company’s service providers’ performance remained satisfactory.
James B. Broderick
Management Engagement Committee chair
28 October 2025
Oversight of the Manager and the Portfolio Manager
The Committee:
• reviews the Portfolio Manager’s performance, over the short and
long term, against the Company’s target investment return, peer
group and the market and considers the social impact
performance of investments made on behalf of the Company.
• considers the reporting it has received from the Manager and
Portfolio Manager throughout the year.
• reviews the appropriateness of the Manager’s and Portfolio
Manager’s agreements, including terms such as fee structures
and notice periods.
• assesses whether the Company receives appropriate
administrative, accounting, company secretarial and marketing
support from the Manager.
Oversight of other service providers
The Committee reviews the performance and competitiveness of
the following service providers on at least an annual basis:
• depositary and custodian;
• corporate broker; and
• registrar.
The Committee also receives a report from the Company
Secretary on ancillary service providers, and considers
anyQrecommendations.
The Committee notes the Audit and Risk Committee’s review of
theQauditor.
The Committee undertook a detailed review of the Portfolio
Manager’s performance and agreed that it has the appropriate
depth and quality of resource to deliver impact and nancial
returns in line with the Company’s target over the longer term.
The Committee also reviewed the terms of the AIFM and portfolio
management agreements and agreed they remained t for
purpose.
The Committee reviewed the other services provided by the
Manager and agreed they were satisfactory.
The annual review of each of the service providers was
satisfactory.
The Committee noted that the Audit and Risk Committee had
undertaken a detailed evaluation of the internal control
environments of the Manager, Portfolio Manager, registrar, and
depositary and custodian.
The Management Engagement Committee is responsible for: (1) the monitoring and
oversight of the Manager’s and Portfolio Manager’s performance and fees, and confirming
their ongoing suitability; and (2) reviewing and assessing the Company’s other service
providers, including reviewing their fees.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
51
Section 2: Governance
Nomination Committee Report
The Nomination Committee is responsible for: (1) the recruitment, selection and induction of
directors; (2) their assessment during their tenure and fees; and (3) the Board’s succession.
Selection and ongoing assessment of Directors
All directors are members. Alice Chapple is the chair of the Committee. The Committee’s terms of reference are available on the
Company’s website at: www.schroders.com/sbsi. The Committee’s e ectiveness was assessed, and judged to be satisfactory, as part of
the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Selection and induction
• The Committee prepares a job
speci cation for each role, and an
independent recruitment rm is
appointed following aQselection process.
For the Chair and the chairs of
committees, the Committee considers
current Board members too.
• Job speci cation outlines the knowledge,
professional skills, personal qualities
and experience requirements.
• Potential candidates are assessed
against the Company’s diversity policy.
• The Committee discusses the long list,
invites a number of candidates for
interview and makes a recommendation
to the Board.
• The Committee reviews the induction
and training of new directors.
Board evaluation and directors’ fees
• The Committee assesses each director
annually.
• Evaluation focuses on whether each
director continues to demonstrate
commitment to their role and provides
aQvaluable contribution to the Board
during the year, taking into account time
commitment, independence, con icts
and training needs.
• Following the evaluation, the Committee
provides a recommendation to
shareholders with respect to the annual
re-election of directors at the AGM.
• All directors retire at the AGM and their
election or re-election is subject to
shareholder approval.
• The Committee reviews directors’ fees,
taking into account comparative data
and reports to shareholders in the
Remuneration Report.
• Any proposed changes to the
remuneration policy for directors are
discussed and reported to shareholders.
Succession
• The Board’s succession policy is that
directors’ tenure will be for no longer
than nine years, except in exceptional
circumstances, and that each director
will be subject to annual re-election at
the AGM. The policy re ects the AIC
Code provision that the Chair should not
remain in post beyond nine years from
the date of their rst appointment to the
Board, and that serving on the Board for
more than nine years from the date of
rst appointment is likely to impair, or
could appear to impair, the
independence of directors.
• The Committee reviews the Board’s
current and future needs at least
annually. Should any need be identi ed,
the Committee will initiate the selection
process.
• The Committee oversees the handover
process for retiring directors.
Application of
succession policy
Selection Induction Annual
evaluation
Annual review of
succession policy
Section 2: Governance
Nomination Committee Report
The Nomination Committee is responsible for: (1) the recruitment, selection and induction of
directors; (2) their assessment during their tenure and fees; and (3) the Board’s succession.
Selection and ongoing assessment of Directors
All directors are members. Alice Chapple is the chair of the Committee. The Committee’s terms of reference are available on the
Company’s website at: www.schroders.com/sbsi. The Committee’s e ectiveness was assessed, and judged to be satisfactory, as part of
the directors’ annual review of the Board and its committees.
Approach
The Committee’s key roles and responsibilities are set out in the table below.
Selection and induction
• The Committee prepares a job
speci cation for each role, and an
independent recruitment rm is
appointed following aQselection process.
For the Chair and the chairs of
committees, the Committee considers
current Board members too.
• Job speci cation outlines the knowledge,
professional skills, personal qualities
and experience requirements.
• Potential candidates are assessed
against the Company’s diversity policy.
• The Committee discusses the long list,
invites a number of candidates for
interview and makes a recommendation
to the Board.
• The Committee reviews the induction
and training of new directors.
Board evaluation and directors’ fees
• The Committee assesses each director
annually.
• Evaluation focuses on whether each
director continues to demonstrate
commitment to their role and provides
aQvaluable contribution to the Board
during the year, taking into account time
commitment, independence, con icts
and training needs.
• Following the evaluation, the Committee
provides a recommendation to
shareholders with respect to the annual
re-election of directors at the AGM.
• All directors retire at the AGM and their
election or re-election is subject to
shareholder approval.
• The Committee reviews directors’ fees,
taking into account comparative data
and reports to shareholders in the
Remuneration Report.
• Any proposed changes to the
remuneration policy for directors are
discussed and reported to shareholders.
Succession
• The Board’s succession policy is that
directors’ tenure will be for no longer
than nine years, except in exceptional
circumstances, and that each director
will be subject to annual re-election at
the AGM. The policy re ects the AIC
Code provision that the Chair should not
remain in post beyond nine years from
the date of their rst appointment to the
Board, and that serving on the Board for
more than nine years from the date of
rst appointment is likely to impair, or
could appear to impair, the
independence of directors.
• The Committee reviews the Board’s
current and future needs at least
annually. Should any need be identi ed,
the Committee will initiate the selection
process.
• The Committee oversees the handover
process for retiring directors.
Application of
succession policy
Selection Induction Annual
evaluation
Annual review of
succession policy
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
52
Section 2: Governance
Application during the year
Selection and induction
• Following a rigorous selection process
using an independent external
recruitment agency, Sapphire Partners,
Ranjan Ramparia was appointed to the
Board with e ect from 16 October 2024.
Sapphire Partners has no connection
with the Company or any of the
directors.
• The Committee noted that following
Ranjan Ramparia’s appointment, she
received an induction with the Secretary
and the Portfolio Manager as well as the
Manager and its various operating
functions.
• Independent external recruitment
agencies were approached to provide
suitable proposals.
Board evaluation and Directors’ fees
• The Board, Chair and committee
evaluation process was undertaken in
June 2025. The evaluation included the
completion of questionnaires, the
results of which are compiled in
aQwritten report provided to the
Committee. The evaluation of the Board
and its committees was led by the Chair
of the Committee. The evaluation of the
Chair was led by the chair of the Audit
and Risk Committee.
• The Committee reviewed each director’s
time commitment and independence,
including pro bono not for pro t roles,
to ensure that each director remained
free from con ict and had su?cient time
available to discharge each of their
duties e ectively. All directors were
considered to be independent in
character and judgement.
• The Committee considered each
director’s contributions, and noted that
in addition to extensive experience as
professionals and non-executive
directors, each director had valuable
skills and experience, as detailed in their
biographies on pages 40 to 41.
• Based on its assessment, the Committee
provided individual recommendations
for each director’s re-election.
• The Committee reviewed the
remuneration policy for
recommendation to the Board and
shareholders, taking into account the
provisions of the Company’s articles of
association and the prevailing
remuneration environment for
investment companies.
• The Committee reviewed directors’ fees,
using external benchmarking, and
recommended that directors’ fees
remain unchanged as detailed in the
remuneration report.
Succession
• The Committee reviewed the succession
policy and agreed that it was still t for
purpose.
• The Committee believes it is important
for the Board to have the appropriate
skills and diversity and has reviewed
composition and succession plans with
these in mind.
• The Board has complied with the
UKQListing Rules in relation to diversity
and provided the relevant disclosures on
page 30.
Recommendations made to, and approved by, the Board:
• That all directors continue to demonstrate commitment to their roles, provide a valuable contribution to the deliberations of the Board
and remain free from con icts with the Company and its directors, and should all be recommended for re-election by shareholders at
the AGM. Biographies of each director can be found on pages 40 to 41.
• That the Directors’ Remuneration Report be put to shareholders for approval for an advisory vote at the forthcoming AGM.
• That Sapphire Partners Limited be engaged to assist in the search for a successor for Mike Balfour who will retire as a director at the
Company’s AGM on 18 December 2024.
• That Ranjan Ramparia be appointed as a non-executive director with e ect from 16 October 2024 and that her election as a director be
proposed, and recommended to shareholders for approval at the 2024 AGM.
Alice Chapple
Nomination Committee chair
28 October 2025
52
Section 2: Governance
Application during the year
Selection and induction
• Following a rigorous selection process
using an independent external
recruitment agency, Sapphire Partners,
Ranjan Ramparia was appointed to the
Board with e ect from 16 October 2024.
Sapphire Partners has no connection
with the Company or any of the
directors.
• The Committee noted that following
Ranjan Ramparia’s appointment, she
received an induction with the Secretary
and the Portfolio Manager as well as the
Manager and its various operating
functions.
• Independent external recruitment
agencies were approached to provide
suitable proposals.
Board evaluation and Directors’ fees
• The Board, Chair and committee
evaluation process was undertaken in
June 2025. The evaluation included the
completion of questionnaires, the
results of which are compiled in
aQwritten report provided to the
Committee. The evaluation of the Board
and its committees was led by the Chair
of the Committee. The evaluation of the
Chair was led by the chair of the Audit
and Risk Committee.
• The Committee reviewed each director’s
time commitment and independence,
including pro bono not for pro t roles,
to ensure that each director remained
free from con ict and had su?cient time
available to discharge each of their
duties e ectively. All directors were
considered to be independent in
character and judgement.
• The Committee considered each
director’s contributions, and noted that
in addition to extensive experience as
professionals and non-executive
directors, each director had valuable
skills and experience, as detailed in their
biographies on pages 40 to 41.
• Based on its assessment, the Committee
provided individual recommendations
for each director’s re-election.
• The Committee reviewed the
remuneration policy for
recommendation to the Board and
shareholders, taking into account the
provisions of the Company’s articles of
association and the prevailing
remuneration environment for
investment companies.
• The Committee reviewed directors’ fees,
using external benchmarking, and
recommended that directors’ fees
remain unchanged as detailed in the
remuneration report.
Succession
• The Committee reviewed the succession
policy and agreed that it was still t for
purpose.
• The Committee believes it is important
for the Board to have the appropriate
skills and diversity and has reviewed
composition and succession plans with
these in mind.
• The Board has complied with the
UKQListing Rules in relation to diversity
and provided the relevant disclosures on
page 30.
Recommendations made to, and approved by, the Board:
• That all directors continue to demonstrate commitment to their roles, provide a valuable contribution to the deliberations of the Board
and remain free from con icts with the Company and its directors, and should all be recommended for re-election by shareholders at
the AGM. Biographies of each director can be found on pages 40 to 41.
• That the Directors’ Remuneration Report be put to shareholders for approval for an advisory vote at the forthcoming AGM.
• That Sapphire Partners Limited be engaged to assist in the search for a successor for Mike Balfour who will retire as a director at the
Company’s AGM on 18 December 2024.
• That Ranjan Ramparia be appointed as a non-executive director with e ect from 16 October 2024 and that her election as a director be
proposed, and recommended to shareholders for approval at the 2024 AGM.
Alice Chapple
Nomination Committee chair
28 October 2025
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
53
Section 2: Governance
Directors’ Remuneration Report
At the AGM held on 18 December 2024, 99.99% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the remuneration policy were in favour. 0.01% were
against and no votes were withheld.
At the AGM held on 18 December 2024, 99.99% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the Directors’ Remuneration Report for the year
ended 30 June 2024 were in favour. 0.01% were against and no
votes were withheld.
Directors’ remuneration policy
The determination of the directors’ fees is the responsibility of the
Nomination Committee, which makes recommendations to the
Board. All directors are members of the Nomination Committee.
It is the Nomination Committee’s policy to determine the level of
directors’ remuneration having regard to amounts payable to
non-executive directors in the industry generally, the role that
individual directors ful l, in respect of Board and committee
responsibilities, and time committed to the Company’s a airs,
taking into account the aggregate limit of fees set out in the
Company’s articles of association. This limit of directors’ fees is
currently set at £500,000 per nancial year and any increase in
this level requires approval by the Board and the Company’s
shareholders.
The Chair of the Board and the Chair of the Audit and Risk
Committee each receive fees at a higher rate than the other
directors to re ect their additional responsibilities. Directors’ fees
are set at a level to recruit and retain individuals of su?cient
calibre, with the level of knowledge, experience and expertise
necessary, and to promote the success of the Company in
reaching its short and long-term strategic objectives.
The Board and its committees exclusively comprise non-executive
directors. No director past or present has an entitlement to
aQpension from the Company and the Company has not, and does
not intend to, operate a share scheme for directors or to award
any share options or long-term performance incentives to any
director. No director has aQservice contract with the Company,
however directors have a letter of appointment. Directors do not
receive exit payments and are not provided with any
compensation for loss of o?ce. Any director who performs
services which in the opinion of the directors are outside the
scope of the ordinary duties of a director, may be paid additional
remuneration to be determined by the directors, subject to the
previously mentioned fee cap and in accordance with the
Company’s articles of association. No other payments are made to
directors other than the reimbursement of reasonable out-of-
pocket expenses incurred in attending to the Company’s
business.
It is intended that all of the provisions of the last approved
directors’ remuneration policy are to continue to apply, subject to
an annual review by the Nomination Committee.
The terms of directors’ letters of appointment are available for
inspection at the Company’s registered o?ce address during
normal business hours and during the AGM at the location of
such meeting.
Implementation of policy
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the policy received from
shareholders would be considered on a case by case basis.
As the Company does not have any employees, no employee pay
and employment conditions were taken into account when
setting this remuneration policy and no employees were
consulted in its construction.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of directors of peer
group companies, as well as industry norms, in ation and factors
a ecting the time commitment expected of the directors. New
directors are subject to the provisions set out in this
remuneration policy.
Directors’ annual report on remuneration
This report sets out how the remuneration policy was
implemented during the year ended 30 June 2025.
Consideration of matters relating to directors’
remuneration
Directors’ remuneration was last reviewed by the Nomination
Committee in June 2025 and no changes were made. The
members of the Committee and Board at the time that
remuneration levels were considered were as set out on pages 40
to 41, with the exception of Mike Balfour who retired as a director
on 18 December 2024. Although no external advice was sought in
considering the levels of directors’ fees, information on fees paid to
directors of other investment companies managed by Schroders
and peer group companies provided by the Secretary was taken
into consideration, as was independent third party research.
Directors’ fees have not changed since the Company’s IPO.
Following this review, it was determined that directors’ fees would
not be changed and for the year ending 30 June 2025 will be
£30,000 per annum for each director plus an additional annual
fee of £5,000 per annum for the chair of the Audit and Risk
Committee. The Chair’s fee is £40,000 per annum. Directors’ fees
(before expenses) for the year ending 30 June 2026 are therefore
expected to total £135,000 inQaggregate, subject to any
directorate changes. There has been no increase in directors’ fees
since the launch of the Company.
The following remuneration policy is currently in force and is subject to a binding vote every
three years. The next vote will take place at the forthcoming AGM and the current policy
provisions will continue to apply until that date. The below Directors’ Remuneration Report is
subject to an annual advisory vote. An ordinary resolution to approve this report will also be
put to shareholders at the forthcoming AGM.
Section 2: Governance
Directors’ Remuneration Report
At the AGM held on 18 December 2024, 99.99% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the remuneration policy were in favour. 0.01% were
against and no votes were withheld.
At the AGM held on 18 December 2024, 99.99% of the votes cast
(including votes cast at the Chair’s discretion) in respect of
approval of the Directors’ Remuneration Report for the year
ended 30 June 2024 were in favour. 0.01% were against and no
votes were withheld.
Directors’ remuneration policy
The determination of the directors’ fees is the responsibility of the
Nomination Committee, which makes recommendations to the
Board. All directors are members of the Nomination Committee.
It is the Nomination Committee’s policy to determine the level of
directors’ remuneration having regard to amounts payable to
non-executive directors in the industry generally, the role that
individual directors ful l, in respect of Board and committee
responsibilities, and time committed to the Company’s a airs,
taking into account the aggregate limit of fees set out in the
Company’s articles of association. This limit of directors’ fees is
currently set at £500,000 per nancial year and any increase in
this level requires approval by the Board and the Company’s
shareholders.
The Chair of the Board and the Chair of the Audit and Risk
Committee each receive fees at a higher rate than the other
directors to re ect their additional responsibilities. Directors’ fees
are set at a level to recruit and retain individuals of su?cient
calibre, with the level of knowledge, experience and expertise
necessary, and to promote the success of the Company in
reaching its short and long-term strategic objectives.
The Board and its committees exclusively comprise non-executive
directors. No director past or present has an entitlement to
aQpension from the Company and the Company has not, and does
not intend to, operate a share scheme for directors or to award
any share options or long-term performance incentives to any
director. No director has aQservice contract with the Company,
however directors have a letter of appointment. Directors do not
receive exit payments and are not provided with any
compensation for loss of o?ce. Any director who performs
services which in the opinion of the directors are outside the
scope of the ordinary duties of a director, may be paid additional
remuneration to be determined by the directors, subject to the
previously mentioned fee cap and in accordance with the
Company’s articles of association. No other payments are made to
directors other than the reimbursement of reasonable out-of-
pocket expenses incurred in attending to the Company’s
business.
It is intended that all of the provisions of the last approved
directors’ remuneration policy are to continue to apply, subject to
an annual review by the Nomination Committee.
The terms of directors’ letters of appointment are available for
inspection at the Company’s registered o?ce address during
normal business hours and during the AGM at the location of
such meeting.
Implementation of policy
The Board did not seek the views of shareholders in setting this
remuneration policy. Any comments on the policy received from
shareholders would be considered on a case by case basis.
As the Company does not have any employees, no employee pay
and employment conditions were taken into account when
setting this remuneration policy and no employees were
consulted in its construction.
Directors’ fees are reviewed annually and take into account
research from third parties on the fee levels of directors of peer
group companies, as well as industry norms, in ation and factors
a ecting the time commitment expected of the directors. New
directors are subject to the provisions set out in this
remuneration policy.
Directors’ annual report on remuneration
This report sets out how the remuneration policy was
implemented during the year ended 30 June 2025.
Consideration of matters relating to directors’
remuneration
Directors’ remuneration was last reviewed by the Nomination
Committee in June 2025 and no changes were made. The
members of the Committee and Board at the time that
remuneration levels were considered were as set out on pages 40
to 41, with the exception of Mike Balfour who retired as a director
on 18 December 2024. Although no external advice was sought in
considering the levels of directors’ fees, information on fees paid to
directors of other investment companies managed by Schroders
and peer group companies provided by the Secretary was taken
into consideration, as was independent third party research.
Directors’ fees have not changed since the Company’s IPO.
Following this review, it was determined that directors’ fees would
not be changed and for the year ending 30 June 2025 will be
£30,000 per annum for each director plus an additional annual
fee of £5,000 per annum for the chair of the Audit and Risk
Committee. The Chair’s fee is £40,000 per annum. Directors’ fees
(before expenses) for the year ending 30 June 2026 are therefore
expected to total £135,000 inQaggregate, subject to any
directorate changes. There has been no increase in directors’ fees
since the launch of the Company.
The following remuneration policy is currently in force and is subject to a binding vote every
three years. The next vote will take place at the forthcoming AGM and the current policy
provisions will continue to apply until that date. The below Directors’ Remuneration Report is
subject to an annual advisory vote. An ordinary resolution to approve this report will also be
put to shareholders at the forthcoming AGM.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
54
Section 2: Governance
Fees paid to directors
The following amounts were paid by the Company to directors for their services in respect of the year ended 30 June 2025. Directors’
remuneration is xed and no directors receive any variable remuneration. The performance of the Company over the period is
presented under Performance Summary on page 5.
Fees Taxable bene ts
1
Total Change in annual fee over years ended 30 June
2025 2024 2025 2024 2025 2024 2025 2024 2023 2022 2021
2
Director £ £ £ £ £ £ % % % % %
Susannah Nicklin (Chair) 40,000 40,000 967 350 40,967 40,350 1.5 (0.3) 1.1 (0.4) n/a
Ranjan Ramparia
3
24,077 – – – 24,077 – n/a n/a n/a n/a n/a
James Broderick 30,000 30,000 – – 30,000 30,000 0.0 (1.0) 0.9 (0.5) n/a
Alice Chapple 30,000 30,000 – – 30,000 30,000 0.0 (0.6) 0.4 (0.5) n/a
Mike Balfour 4
15,122 35,000 4,452 4,100 19,574 39,100 (49.9) (1.4) 8.3 2.6 n/a
139,199 135,000 5,419 4,450 144,618 139,450
1
Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up to include PAYE and NI contributions.
2
The directors were appointed on 9 November 2020. Directors fees were payable from 22 December 2020.
3
Appointed as a director on 16 October 2024 and Chair of the Audit and Risk Committee on 18 December 2024.
4
Retired as a director and Chair of the Audit and Risk Committee on 18 December 2024.
The information in the above table has been audited.
Expenditure by the Company on remuneration and distributions to shareholders
The table below compares the remuneration payable to directors, to distributions made to shareholders during the year under review
and the prior year. In considering these gures, shareholders should take into account the Company’s investment objective.
Year ended Year ended
30 June 30 June
2025 2024 Change
£000 £000 %
Remuneration payable to directors 145 139 4.3
Distributions paid to shareholders
– Dividends paid during the year 2,423 1,934
– Share buybacks 1,471 1,409
Total distributions paid to shareholders 3,894 3,343 16.5
The information in the above table has been audited.
54
Section 2: Governance
Fees paid to directors
The following amounts were paid by the Company to directors for their services in respect of the year ended 30 June 2025. Directors’
remuneration is xed and no directors receive any variable remuneration. The performance of the Company over the period is
presented under Performance Summary on page 5.
Fees Taxable bene ts
1
Total Change in annual fee over years ended 30 June
2025 2024 2025 2024 2025 2024 2025 2024 2023 2022 2021
2
Director £ £ £ £ £ £ % % % % %
Susannah Nicklin (Chair) 40,000 40,000 967 350 40,967 40,350 1.5 (0.3) 1.1 (0.4) n/a
Ranjan Ramparia
3
24,077 – – – 24,077 – n/a n/a n/a n/a n/a
James Broderick 30,000 30,000 – – 30,000 30,000 0.0 (1.0) 0.9 (0.5) n/a
Alice Chapple 30,000 30,000 – – 30,000 30,000 0.0 (0.6) 0.4 (0.5) n/a
Mike Balfour 4
15,122 35,000 4,452 4,100 19,574 39,100 (49.9) (1.4) 8.3 2.6 n/a
139,199 135,000 5,419 4,450 144,618 139,450
1
Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up to include PAYE and NI contributions.
2
The directors were appointed on 9 November 2020. Directors fees were payable from 22 December 2020.
3
Appointed as a director on 16 October 2024 and Chair of the Audit and Risk Committee on 18 December 2024.
4
Retired as a director and Chair of the Audit and Risk Committee on 18 December 2024.
The information in the above table has been audited.
Expenditure by the Company on remuneration and distributions to shareholders
The table below compares the remuneration payable to directors, to distributions made to shareholders during the year under review
and the prior year. In considering these gures, shareholders should take into account the Company’s investment objective.
Year ended Year ended
30 June 30 June
2025 2024 Change
£000 £000 %
Remuneration payable to directors 145 139 4.3
Distributions paid to shareholders
– Dividends paid during the year 2,423 1,934
– Share buybacks 1,471 1,409
Total distributions paid to shareholders 3,894 3,343 16.5
The information in the above table has been audited.
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
55
Section 2: Governance
Performance graph since 22 December 2020 (launch date)
Share price total return versus the FTSE All-Share Index Total Return, for the period from launch on 22 December 2020, to
30 June 2025
1
1
Source: Morningstar. Rebased to 100 at 22 December 2020. The Company is legally required to compare its performance with a broad equity market index. The
Company’s performance is expected to have a low correlation to traditional quoted markets and has no meaningful index comparator. So the FTSE All-Share Index has
been chosen as it is re ective of economic conditions in the UK.
De nitions of terms and performance measures are provided on pages 87 to 88.
Directors’ share interests
The Company’s articles of association do not require directors to own shares in the Company. The interests of directors, including those
of connected persons, at the beginning and end of the nancial year under review, are set out below.
30 June 30 June
2025
1
2024
1
Susannah Nicklin 25,412 25,412
James Broderick 500,000 500,000
Alice Chapple 10,000 10,000
Ranjan Ramparia 2
5,000 NA
1
Ordinary shares of 1p each.
2
Ranjan Ramparia was appointed as a director on 16 October 2024.
The information in the above table has been audited. There have been no changes in the directors’ interests in the shares of the
Company between 30 June 2025 and the date of this annual report.
Susannah Nicklin
Chair
28 October 2025
FTSE All-Share Index Total Return Share price total return
80
90
100
110
120
130
140
150
160
30/06/25 30/06/24 30/06/23 30/06/22 30/06/21 22/12/20
Section 2: Governance
Performance graph since 22 December 2020 (launch date)
Share price total return versus the FTSE All-Share Index Total Return, for the period from launch on 22 December 2020, to
30 June 2025
1
1
Source: Morningstar. Rebased to 100 at 22 December 2020. The Company is legally required to compare its performance with a broad equity market index. The
Company’s performance is expected to have a low correlation to traditional quoted markets and has no meaningful index comparator. So the FTSE All-Share Index has
been chosen as it is re ective of economic conditions in the UK.
De nitions of terms and performance measures are provided on pages 87 to 88.
Directors’ share interests
The Company’s articles of association do not require directors to own shares in the Company. The interests of directors, including those
of connected persons, at the beginning and end of the nancial year under review, are set out below.
30 June 30 June
2025
1
2024
1
Susannah Nicklin 25,412 25,412
James Broderick 500,000 500,000
Alice Chapple 10,000 10,000
Ranjan Ramparia 2
5,000 NA
1
Ordinary shares of 1p each.
2
Ranjan Ramparia was appointed as a director on 16 October 2024.
The information in the above table has been audited. There have been no changes in the directors’ interests in the shares of the
Company between 30 June 2025 and the date of this annual report.
Susannah Nicklin
Chair
28 October 2025
FTSE All-Share Index Total Return Share price total return
80
90
100
110
120
130
140
150
160
30/06/25 30/06/24 30/06/23 30/06/22 30/06/21 22/12/20
Schroder BSC Social Impact Trust plcFAnnual Report and Financial Statements 2025
56
Section 2: Governance
Statement of Directors’ Responsibilities in respect
of the Annual Report and Financial Statements
The directors are responsible for preparing the annual report and
the nancial statements in accordance with UK adopted
international accounting standards and applicable law and
regulations.
Company law requires the directors to prepare nancial
statements for each nancial year. Under that law the directors
have prepared the nancial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (FRS: 102 The
Financial Reporting Standard applicable in the UK and Republic of
Ireland) and applicable law. Under company law, the directors
must not approve the nancial statements unless they are
satis ed that they give a true and fair view of the state of a airs of
the Company and of the pro t or loss for the Company for that
period.
In preparing these nancial statements, the directors are required
to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance with UK
adopted international accounting standards, subject to any
material departures disclosed and explained in the nancial
statements;
• prepare the nancial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business; and
• prepare a directors’ report, a strategic report and directors’
remuneration report which comply with the requirements of
the Companies Act 2006.
The directors are responsible for keeping adequate accounting
records that are su?cient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the
nancial position of the Company and enable them to ensure that
the nancial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The
directors are responsible for ensuring that the annual report and
nancial statements, taken as a whole, are fair, balanced, and
understandable and provides the information necessary for
shareholders to assess the Company’s performance, business
model and strategy.
Website publication
The directors are responsible for ensuring the annual report and
the nancial statements are made available on a website.
Financial statements are published on the Company’s website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of nancial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Company's website is the responsibility of the
directors. The directors' responsibility also extends to the ongoing
integrity of the nancial statements contained therein.
Directors’ responsibilities pursuant to DTR4
The directors con rm to the best of their knowledge:
• The nancial statements have been prepared in accordance
with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, nancial position and pro t
and loss of the Company.
• The annual report includes a fair review of the development
and performance of the business and the nancial position of
the Company, together with a description of the principal risks
and uncertainties that they face.
On behalf of the Board
Susannah Nicklin
Chair
28 October 2025
The directors are responsible for preparing the annual report and financial statements in
accordance with UK adopted international accounting standards and applicable law and
regulations.
56
Section 2: Governance
Statement of Directors’ Responsibilities in respect
of the Annual Report and Financial Statements
The directors are responsible for preparing the annual report and
the nancial statements in accordance with UK adopted
international accounting standards and applicable law and
regulations.
Company law requires the directors to prepare nancial
statements for each nancial year. Under that law the directors
have prepared the nancial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (FRS: 102 The
Financial Reporting Standard applicable in the UK and Republic of
Ireland) and applicable law. Under company law, the directors
must not approve the nancial statements unless they are
satis ed that they give a true and fair view of the state of a airs of
the Company and of the pro t or loss for the Company for that
period.
In preparing these nancial statements, the directors are required
to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether they have been prepared in accordance with UK
adopted international accounting standards, subject to any
material departures disclosed and explained in the nancial
statements;
• prepare the nancial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business; and
• prepare a directors’ report, a strategic report and directors’
remuneration report which comply with the requirements of
the Companies Act 2006.
The directors are responsible for keeping adequate accounting
records that are su?cient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the
nancial position of the Company and enable them to ensure that
the nancial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The
directors are responsible for ensuring that the annual report and
nancial statements, taken as a whole, are fair, balanced, and
understandable and provides the information necessary for
shareholders to assess the Company’s performance, business
model and strategy.
Website publication
The directors are responsible for ensuring the annual report and
the nancial statements are made available on a website.
Financial statements are published on the Company’s website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of nancial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Company's website is the responsibility of the
directors. The directors' responsibility also extends to the ongoing
integrity of the nancial statements contained therein.
Directors’ responsibilities pursuant to DTR4
The directors con rm to the best of their knowledge:
• The nancial statements have been prepared in accordance
with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, nancial position and pro t
and loss of the Company.
• The annual report includes a fair review of the development
and performance of the business and the nancial position of
the Company, together with a description of the principal risks
and uncertainties that they face.
On behalf of the Board
Susannah Nicklin
Chair
28 October 2025
The directors are responsible for preparing the annual report and financial statements in
accordance with UK adopted international accounting standards and applicable law and
regulations.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
57
Section 3: Financial Statements
Independent Auditor’s Report 58
Income Statement 63
Statement of Changes in Equity 64
Balance Sheet 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Section 3: Financial Statements
Section 3: Financial Statements
Independent Auditor’s Report 58
Income Statement 63
Statement of Changes in Equity 64
Balance Sheet 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Section 3: Financial Statements
Opinion on the nancial statements
In our opinion the nancial statements:
• give a true and fair view of the state of the Company’s a airs as
at 30 June 2025 and of its net return for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
We have audited the nancial statements of Schorder BSC Social
Impact Trust Plc (the ‘Company’) for the year ended 30 June 2025
which comprise the Income Statement, the Statement of Changes
in Equity, the Balance Sheet, the Cash ow Statement, and notes
to the nancial statements, including a summary of signi cant
accounting policies. The nancial reporting framework that has
been applied in their preparation is applicable law and United
Kingdom Accounting Standards, including Financial Reporting
Standard 102 The Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland (United Kingdom
Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the nancial
statements section of our report. We believe that the audit
evidence we have obtained is su cient and appropriate to
provide a basis for our opinion. Our audit opinion is consistent
with the additional report to the audit committee.
Independence
Following the recommendation of the audit committee, we were
appointed by the Board of Directors on 16 October 2020 to audit
the nancial statements for the year ended 30 June 2021 and
subsequent nancial periods. The period of total uninterrupted
engagement including retenders and reappointments is 5 years,
covering the years ended 30 June 2021 to 30 June 2025. We
remain independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the nancial
statements in the UK, including the FRC’s Ethical Standard as
applied to listed public interest entities, and we have ful lled our
other ethical responsibilities in accordance with these
requirements. The non-audit services prohibited by that standard
were not provided to the Company.
Material uncertainty related to going concern
We draw attention to the Going concern section in Note 1(a) to
the nancial statements, which indicates that the Company is
undertaking a strategic review that may result in changes to its
investment structure, which would be subject to the shareholders’
approval and therefore not guaranteed.
As stated in Note 1(a) these events and conditions, along with
other matters as set forth in the Going concern section in Note
1(a) indicates that a material uncertainty exists that may cast
signi cant doubt on the Company’s ability to continue as a going
concern. The nancial statements do not include any adjustments
that would result from the basis of preparation being
inappropriate. Our opinion is not modi ed in respect of this
matter.
Given the material uncertainty noted above and our risk
assessment we considered going concern to be a key audit
matter. Our evaluation of the directors’ assessment of the
Company’s ability to continue to adopt the going concern basis of
accounting and in response to the Key Audit Matter included the
following:
• Assessing and challenging the appropriateness of the directors’
assumptions and judgements made in their stress tested
forecasts by performing sensitivity analyses on key factors,
including consideration of the available realisable, liquid assets,
available cash resources relative to forecast expenditure and
commitments;
• Evaluating and corroborating the evidence supporting the
directors’ going concern assessment and the identi ed material
uncertainty, including review of RNS announcements, minutes
of Board Meetings, and any external information that could
materially a ect the Company’s ability to continue as a going
concern; and
• Reviewing the disclosures included in the nancial statements
relating to going concern to check that the disclosure is
consistent with our understanding of the circumstances.
In auditing the nancial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the nancial statements is appropriate.
In relation to the Company’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the
nancial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of
this report.
Overview
2025 2024
Key audit matters Valuation of unquoted
investments
Going concern
Materiality Company nancial statements as a whole
£1.25m (2024: £1.29m) based on 1.5% of
Net assets ((2024: 1.5%) of Net assets)
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding of the
Company and its environment, including the Company’s system of
internal control, and assessing the risks of material misstatement
in the nancial statements. We also addressed the risk of
management override of internal controls, including assessing
whether there was evidence of bias by the directors that may
have represented a risk of material misstatement.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most signi cance in our audit of the nancial
statements of the current period and include the most signi cant
assessed risks of material misstatement (whether or not due to
fraud) that we identi ed, including those which had the greatest
e ect on: the overall audit strategy, the allocation of resources in
the audit, and directing the e orts of the engagement team. These
matters were addressed in the context of our audit of the nancial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
58
Section 3: Financial Statements
Independent Auditor’s Report
to the Members of Schroder BSC Social Impact Trust plc
In our opinion the nancial statements:
• give a true and fair view of the state of the Company’s a airs as
at 30 June 2025 and of its net return for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
We have audited the nancial statements of Schorder BSC Social
Impact Trust Plc (the ‘Company’) for the year ended 30 June 2025
which comprise the Income Statement, the Statement of Changes
in Equity, the Balance Sheet, the Cash ow Statement, and notes
to the nancial statements, including a summary of signi cant
accounting policies. The nancial reporting framework that has
been applied in their preparation is applicable law and United
Kingdom Accounting Standards, including Financial Reporting
Standard 102 The Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland (United Kingdom
Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the nancial
statements section of our report. We believe that the audit
evidence we have obtained is su cient and appropriate to
provide a basis for our opinion. Our audit opinion is consistent
with the additional report to the audit committee.
Independence
Following the recommendation of the audit committee, we were
appointed by the Board of Directors on 16 October 2020 to audit
the nancial statements for the year ended 30 June 2021 and
subsequent nancial periods. The period of total uninterrupted
engagement including retenders and reappointments is 5 years,
covering the years ended 30 June 2021 to 30 June 2025. We
remain independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the nancial
statements in the UK, including the FRC’s Ethical Standard as
applied to listed public interest entities, and we have ful lled our
other ethical responsibilities in accordance with these
requirements. The non-audit services prohibited by that standard
were not provided to the Company.
Material uncertainty related to going concern
We draw attention to the Going concern section in Note 1(a) to
the nancial statements, which indicates that the Company is
undertaking a strategic review that may result in changes to its
investment structure, which would be subject to the shareholders’
approval and therefore not guaranteed.
As stated in Note 1(a) these events and conditions, along with
other matters as set forth in the Going concern section in Note
1(a) indicates that a material uncertainty exists that may cast
signi cant doubt on the Company’s ability to continue as a going
concern. The nancial statements do not include any adjustments
that would result from the basis of preparation being
inappropriate. Our opinion is not modi ed in respect of this
matter.
Given the material uncertainty noted above and our risk
assessment we considered going concern to be a key audit
matter. Our evaluation of the directors’ assessment of the
Company’s ability to continue to adopt the going concern basis of
accounting and in response to the Key Audit Matter included the
following:
• Assessing and challenging the appropriateness of the directors’
assumptions and judgements made in their stress tested
forecasts by performing sensitivity analyses on key factors,
including consideration of the available realisable, liquid assets,
available cash resources relative to forecast expenditure and
commitments;
• Evaluating and corroborating the evidence supporting the
directors’ going concern assessment and the identi ed material
uncertainty, including review of RNS announcements, minutes
of Board Meetings, and any external information that could
materially a ect the Company’s ability to continue as a going
concern; and
• Reviewing the disclosures included in the nancial statements
relating to going concern to check that the disclosure is
consistent with our understanding of the circumstances.
In auditing the nancial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the nancial statements is appropriate.
In relation to the Company’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the
nancial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections of
this report.
Overview
2025 2024
Key audit matters Valuation of unquoted
investments
Going concern
Materiality Company nancial statements as a whole
£1.25m (2024: £1.29m) based on 1.5% of
Net assets ((2024: 1.5%) of Net assets)
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding of the
Company and its environment, including the Company’s system of
internal control, and assessing the risks of material misstatement
in the nancial statements. We also addressed the risk of
management override of internal controls, including assessing
whether there was evidence of bias by the directors that may
have represented a risk of material misstatement.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most signi cance in our audit of the nancial
statements of the current period and include the most signi cant
assessed risks of material misstatement (whether or not due to
fraud) that we identi ed, including those which had the greatest
e ect on: the overall audit strategy, the allocation of resources in
the audit, and directing the e orts of the engagement team. These
matters were addressed in the context of our audit of the nancial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
58
Section 3: Financial Statements
Independent Auditor’s Report
to the Members of Schroder BSC Social Impact Trust plc
In addition to the matter described in the Material uncertainty related to going concern section of our report, we have determined the
matters described below to be the key audit matters to be communicated in our report.
How the scope of our audit
Key audit matter addressed the key audit matter
We assessed the design and implementation of controls relating to
the valuation of unquoted investments. This included obtaining an
understanding of the oversight and governance structures in relation
to the valuation process.
For 100% of the unquoted investment population, we challenged
whether the valuation methodology was appropriate in the
circumstances under the International Private Equity and Venture
Capital Valuation (“IPEV”) Guidelines and FRS 102 and performed the
following procedures:
Unquoted Investment held at fair value
observe the Portfolio Manager discussing and challenging the
estimation uncertainty in the valuations and the fair value movements
during the year.
We obtained direct con rmation from the General Partners of the
Funds to con rm the share of the Net Asset Values (‘NAV’) held at the
balance sheet date.
We recalculated the Company’s share of NAV based on the direct
con rmation received and the NAV reported within the June 2025
Investor Report.
We obtained the unaudited June 2025 quarterly reports, prepared by
the Investment Manager or General Partners, from the Portfolio
Manager and used these as the basis for the Portfolio Manager’s and
the Manager’s year-end valuation to recalculate the year-end
investment values.
We compared the NAV in the audited or draft audited nancial
statements with the NAV in the Investor Report for the same period to
check the accuracy of NAV reporting by the underlying Funds.
We reviewed the audited nancial statements and audit reports for
each Fund to determine whether the audit opinion was modi ed.
We assessed whether NAV was an appropriate measure of fair value.
We calculated NAV movements for each Fund between the latest
audited nancial statements and the June 2025 Investor Reports
where the Funds and the company did not share the same year end.
Investment held at amortised cost
We assessed whether amortised cost was the most appropriate
valuation basis for the investments held at amortised cost.
We obtained direct con rmation from the holders of the loan notes of
the capital amount outstanding at the balance sheet date.
For all the investments held in loan portfolios, we agreed all the inputs
used in the amortisation calculation to the underlying loan
agreements.
We also agreed capital and interest repayments to the underlying loan
agreement and to bank statements if amounts were paid in the
period.
We recalculated the amortised cost of each of the loans.
We considered whether there were any impairment indicators present
within the loan, such as interest payments not being made or capital
repayments missed. We did this by tracing all payments through bank
statements to con rm these were all made in line with the agreement.
Key observations:
Based on our procedures performed we did not identify any matters
to suggest the valuation of the unquoted investments was not
appropriate.
We consider the valuation of unquoted
investments to be the most signi cant audit
area.
There is an inherent risk of management
override arising from the unquoted
investment
valuations being prepared by the Manager,
and the Portfolio Manager whose
performance is assessed with reference to
the net asset value of the Company.
There is a high level of estimation
uncertainty involved in determining the
valuations of unquoted investments.
Unquoted Investments is the most
signi cant balance in the nancial
statements and where we utilise most of our
audit resources and was therefore
considered to be a key audit matter.
Valuation of
unquoted
investments
Refer to “Note 1(b) –
Valuation of
investments” within
Accounting Policies,
“Note 2 – Losses on
investments held at
fair value through
pro t or loss” and
“Note 9 – Fixed
assets”.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 59
Section 3: Financial Statements
matters described below to be the key audit matters to be communicated in our report.
How the scope of our audit
Key audit matter addressed the key audit matter
We assessed the design and implementation of controls relating to
the valuation of unquoted investments. This included obtaining an
understanding of the oversight and governance structures in relation
to the valuation process.
For 100% of the unquoted investment population, we challenged
whether the valuation methodology was appropriate in the
circumstances under the International Private Equity and Venture
Capital Valuation (“IPEV”) Guidelines and FRS 102 and performed the
following procedures:
Unquoted Investment held at fair value
observe the Portfolio Manager discussing and challenging the
estimation uncertainty in the valuations and the fair value movements
during the year.
We obtained direct con rmation from the General Partners of the
Funds to con rm the share of the Net Asset Values (‘NAV’) held at the
balance sheet date.
We recalculated the Company’s share of NAV based on the direct
con rmation received and the NAV reported within the June 2025
Investor Report.
We obtained the unaudited June 2025 quarterly reports, prepared by
the Investment Manager or General Partners, from the Portfolio
Manager and used these as the basis for the Portfolio Manager’s and
the Manager’s year-end valuation to recalculate the year-end
investment values.
We compared the NAV in the audited or draft audited nancial
statements with the NAV in the Investor Report for the same period to
check the accuracy of NAV reporting by the underlying Funds.
We reviewed the audited nancial statements and audit reports for
each Fund to determine whether the audit opinion was modi ed.
We assessed whether NAV was an appropriate measure of fair value.
We calculated NAV movements for each Fund between the latest
audited nancial statements and the June 2025 Investor Reports
where the Funds and the company did not share the same year end.
Investment held at amortised cost
We assessed whether amortised cost was the most appropriate
valuation basis for the investments held at amortised cost.
We obtained direct con rmation from the holders of the loan notes of
the capital amount outstanding at the balance sheet date.
For all the investments held in loan portfolios, we agreed all the inputs
used in the amortisation calculation to the underlying loan
agreements.
We also agreed capital and interest repayments to the underlying loan
agreement and to bank statements if amounts were paid in the
period.
We recalculated the amortised cost of each of the loans.
We considered whether there were any impairment indicators present
within the loan, such as interest payments not being made or capital
repayments missed. We did this by tracing all payments through bank
statements to con rm these were all made in line with the agreement.
Key observations:
Based on our procedures performed we did not identify any matters
to suggest the valuation of the unquoted investments was not
appropriate.
We consider the valuation of unquoted
investments to be the most signi cant audit
area.
There is an inherent risk of management
override arising from the unquoted
investment
valuations being prepared by the Manager,
and the Portfolio Manager whose
performance is assessed with reference to
the net asset value of the Company.
There is a high level of estimation
uncertainty involved in determining the
valuations of unquoted investments.
Unquoted Investments is the most
signi cant balance in the nancial
statements and where we utilise most of our
audit resources and was therefore
considered to be a key audit matter.
Valuation of
unquoted
investments
Refer to “Note 1(b) –
Valuation of
investments” within
Accounting Policies,
“Note 2 – Losses on
investments held at
fair value through
pro t or loss” and
“Note 9 – Fixed
assets”.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 59
Section 3: Financial Statements
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the e ect of misstatements. We
consider materiality to be the magnitude by which misstatements, including omissions, could in uence the economic decisions of
reasonable users that are taken on the basis of the nancial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality
level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not
necessarily be evaluated as immaterial as we also take account of the nature of identi ed misstatements, and the particular
circumstances of their occurrence, when evaluating their e ect on the nancial statements as a whole.
Based on our professional judgement, we determined materiality for the nancial statements as a whole and performance materiality
as follows:
Company nancial statements
2025 2024
£ £
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit di erences in excess of £62,500 (2024: £64,500).
We also agreed to report di erences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report
other than the nancial statements and our auditor’s report thereon. Our opinion on the nancial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion
thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the nancial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the nancial statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The UK Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code
speci ed for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the nancial statements or our knowledge obtained during the audit.
£1.25m £1.29m Materiality
1.5% of Net assets Basis for determining materiality
As an investment trust, the net asset value is the key measure of performance for users of the
nancial statements
Rationale for the benchmark applied
£937k £970k Performance materiality
75% of materiality Basis for determining performance
materiality
The level of performance materiality applied was set after having considered a number of
factors including the expected total value of known and likely misstatements and the level of
transactions in the year.
Rationale for the percentage
applied for performance materiality
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60
Section 3: Financial Statements
We apply the concept of materiality both in planning and performing our audit, and in evaluating the e ect of misstatements. We
consider materiality to be the magnitude by which misstatements, including omissions, could in uence the economic decisions of
reasonable users that are taken on the basis of the nancial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality
level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not
necessarily be evaluated as immaterial as we also take account of the nature of identi ed misstatements, and the particular
circumstances of their occurrence, when evaluating their e ect on the nancial statements as a whole.
Based on our professional judgement, we determined materiality for the nancial statements as a whole and performance materiality
as follows:
Company nancial statements
2025 2024
£ £
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit di erences in excess of £62,500 (2024: £64,500).
We also agreed to report di erences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report
other than the nancial statements and our auditor’s report thereon. Our opinion on the nancial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion
thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the nancial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the nancial statements themselves. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The UK Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code
speci ed for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the nancial statements or our knowledge obtained during the audit.
£1.25m £1.29m Materiality
1.5% of Net assets Basis for determining materiality
As an investment trust, the net asset value is the key measure of performance for users of the
nancial statements
Rationale for the benchmark applied
£937k £970k Performance materiality
75% of materiality Basis for determining performance
materiality
The level of performance materiality applied was set after having considered a number of
factors including the expected total value of known and likely misstatements and the level of
transactions in the year.
Rationale for the percentage
applied for performance materiality
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Section 3: Financial Statements
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies
Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the nancial
statements and for being satis ed that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error.
In preparing the nancial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the nancial statements
Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to in uence the economic decisions of users taken on the basis of these nancial
statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
Going concern and longer-term viability • The directors' statement with regards to the appropriateness of adopting the going
concern basis of accounting and any material uncertainties identi ed as set out on
page 37; and
• The directors’ explanation as to their assessment of the Company’s prospects, the
period this assessment covers and why the period is appropriate set out on page 37.
Other Code provisions • Directors' statement on fair, balanced and understandable set out on page 56;
• Board’s con rmation that it has carried out a robust assessment of the emerging and
principal risks set out on page 33;
• The section of the annual report that describes the review of e ectiveness of risk
management and internal control systems set out on page 33; and
• The section describing the work of the Audit Committee set out on page 46.
Strategic report and Directors’ report In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the nancial
year for which the nancial statements are prepared is consistent with the nancial
statements; and
• the Strategic report and the Directors’ report have been prepared in accordance with
applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment
obtained in the course of the audit, we have not identi ed material misstatements in the
strategic report or the Directors’ report.
Directors’ remuneration In our opinion, the part of the Directors’ remuneration report to be audited has been
properly prepared in accordance with the Companies Act 2006.
Matters on which we are required to
report by exception
We have nothing to report in respect of the following matters in relation to which the
Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit
have not been received from branches not visited by us; or
• the nancial statements and the part of the Directors’ remuneration report to be
audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration speci ed by law are not made; or
• we have not received all the information and explanations we require for our audit.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 61
Section 3: Financial Statements
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies
Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the nancial
statements and for being satis ed that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error.
In preparing the nancial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the nancial statements
Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to in uence the economic decisions of users taken on the basis of these nancial
statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below:
Going concern and longer-term viability • The directors' statement with regards to the appropriateness of adopting the going
concern basis of accounting and any material uncertainties identi ed as set out on
page 37; and
• The directors’ explanation as to their assessment of the Company’s prospects, the
period this assessment covers and why the period is appropriate set out on page 37.
Other Code provisions • Directors' statement on fair, balanced and understandable set out on page 56;
• Board’s con rmation that it has carried out a robust assessment of the emerging and
principal risks set out on page 33;
• The section of the annual report that describes the review of e ectiveness of risk
management and internal control systems set out on page 33; and
• The section describing the work of the Audit Committee set out on page 46.
Strategic report and Directors’ report In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the nancial
year for which the nancial statements are prepared is consistent with the nancial
statements; and
• the Strategic report and the Directors’ report have been prepared in accordance with
applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment
obtained in the course of the audit, we have not identi ed material misstatements in the
strategic report or the Directors’ report.
Directors’ remuneration In our opinion, the part of the Directors’ remuneration report to be audited has been
properly prepared in accordance with the Companies Act 2006.
Matters on which we are required to
report by exception
We have nothing to report in respect of the following matters in relation to which the
Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit
have not been received from branches not visited by us; or
• the nancial statements and the part of the Directors’ remuneration report to be
audited are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration speci ed by law are not made; or
• we have not received all the information and explanations we require for our audit.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 61
Section 3: Financial Statements
Non-compliance with laws and regulations
Based on:
• Our understanding of the Company and the industry in which it
operates;
• Discussion with the Manager and Portfolio Manager and those
charged with governance (being the board of directors); and
• Obtaining and understanding of the Company’s policies and
procedures regarding compliance with laws and regulations;
We considered the signi cant laws and regulations to be
Companies Act 2006, the FCA listing and DTR rules, the principles
of the AIC Code of Corporate Governance, industry practice
represented by the AIC SORP, the applicable accounting
framework, and quali cation as an Investment Trust under UK tax
legislation as any non-compliance of this would lead to the
Company losing various deductions and exemptions from
corporation tax.
Our procedures in respect of the above included:
• Agreement of the nancial statement disclosures to underlying
supporting documentation;
• Enquiries of management and those charged with governance
relating to the existence of any non-compliance with laws and
regulations;
• Reviewing minutes of meeting of those charged with
governance throughout the period for instances of
non-compliance with laws and regulations; and
• Reviewing the calculation in relation to Investment Trust
compliance to check that the Company was meeting its
requirements to retain their Investment Trust Status.
Fraud
We assessed the susceptibility of the nancial statement to
material misstatement including fraud.
Our risk assessment procedures included:
• Enquiry with the Manager, Portfolio Manager and those
charged with governance regarding any known or suspected
instances of fraud;
• Review of minutes of meeting of those charged with
governance for any known or suspected instances of fraud; and
• Discussion amongst the engagement team as to how and
where fraud might occur in the nancial statements.
Based on our risk assessment, we considered the areas most
susceptible to be valuation of unquoted investments and
management override of controls in relation to signi cant
judgements made.
Our procedures in respect of the above included:
• We addressed the risk of fraud in the valuation of unquoted
investments by testing the judgements applied in those
valuations, as set out in the Key Audit Matters section above;
• Considered the opportunity and incentive to manipulate
accounting entries and assessed the appropriateness of any
post-closing adjustments made in the period end nancial
reporting process;
• Performed a review of estimates and judgements applied by
the directors in the nancial statements to assess their
appropriateness and the existence of any systematic bias; and
• Incorporated an element of unpredictability in our testing.
We also communicated relevant identi ed laws and regulations
and potential fraud risks to all engagement team members who
were all deemed to have appropriate competence and capabilities
and remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of
material misstatement in the nancial statements, recognising
that the risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery, misrepresentations or through collusion. There
are inherent limitations in the audit procedures performed and
the further removed non-compliance with laws and regulations is
from the events and transactions re ected in the nancial
statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the
Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Daniel Quiligotti
(Senior Statutory Auditor)
For and on behalf of BDO LLP
Statutory Auditor
London, United Kingdom
28 October 2025
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
62
Section 3: Financial Statements
Based on:
• Our understanding of the Company and the industry in which it
operates;
• Discussion with the Manager and Portfolio Manager and those
charged with governance (being the board of directors); and
• Obtaining and understanding of the Company’s policies and
procedures regarding compliance with laws and regulations;
We considered the signi cant laws and regulations to be
Companies Act 2006, the FCA listing and DTR rules, the principles
of the AIC Code of Corporate Governance, industry practice
represented by the AIC SORP, the applicable accounting
framework, and quali cation as an Investment Trust under UK tax
legislation as any non-compliance of this would lead to the
Company losing various deductions and exemptions from
corporation tax.
Our procedures in respect of the above included:
• Agreement of the nancial statement disclosures to underlying
supporting documentation;
• Enquiries of management and those charged with governance
relating to the existence of any non-compliance with laws and
regulations;
• Reviewing minutes of meeting of those charged with
governance throughout the period for instances of
non-compliance with laws and regulations; and
• Reviewing the calculation in relation to Investment Trust
compliance to check that the Company was meeting its
requirements to retain their Investment Trust Status.
Fraud
We assessed the susceptibility of the nancial statement to
material misstatement including fraud.
Our risk assessment procedures included:
• Enquiry with the Manager, Portfolio Manager and those
charged with governance regarding any known or suspected
instances of fraud;
• Review of minutes of meeting of those charged with
governance for any known or suspected instances of fraud; and
• Discussion amongst the engagement team as to how and
where fraud might occur in the nancial statements.
Based on our risk assessment, we considered the areas most
susceptible to be valuation of unquoted investments and
management override of controls in relation to signi cant
judgements made.
Our procedures in respect of the above included:
• We addressed the risk of fraud in the valuation of unquoted
investments by testing the judgements applied in those
valuations, as set out in the Key Audit Matters section above;
• Considered the opportunity and incentive to manipulate
accounting entries and assessed the appropriateness of any
post-closing adjustments made in the period end nancial
reporting process;
• Performed a review of estimates and judgements applied by
the directors in the nancial statements to assess their
appropriateness and the existence of any systematic bias; and
• Incorporated an element of unpredictability in our testing.
We also communicated relevant identi ed laws and regulations
and potential fraud risks to all engagement team members who
were all deemed to have appropriate competence and capabilities
and remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of
material misstatement in the nancial statements, recognising
that the risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from
error, as fraud may involve deliberate concealment by, for
example, forgery, misrepresentations or through collusion. There
are inherent limitations in the audit procedures performed and
the further removed non-compliance with laws and regulations is
from the events and transactions re ected in the nancial
statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the
Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Daniel Quiligotti
(Senior Statutory Auditor)
For and on behalf of BDO LLP
Statutory Auditor
London, United Kingdom
28 October 2025
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
62
Section 3: Financial Statements
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
63
Section 3: Financial Statements
Income Statement
for the year ended 30 June 2025
2025 2024
Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Losses on investments held at fair value through pro t or loss 2 – (2,408) (2,408) – (833) (833)
Reversal of impairment provision/(impairment provision) on
investments held at amortised cost – 235 235 – (413) (413)
Income from investments 3 4,053 – 4,053 3,320 – 3,320
Other interest receivable and similar income 3 307 – 307 167 – 167
Gross return/(loss) 4,360 (2,173) 2,187 3,487 (1,246) 2,241
Investment management fees 4 (309) (309) (618) (340) (340) (680)
Administrative expenses 5 (647) – (647) (497) – (497)
Transaction costs – – – – (15) (15)
Net return/(loss) before taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Taxation 6 – – – – – –
Net return/(loss) after taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Return/(loss) per share (pence) 7 4.15 (3.02) 1.13 3.16 (1.91) 1.25
The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent
supplementary information prepared under guidance issued by The Association of Investment Companies. The Company has no other
items of other comprehensive income, and therefore the net return/(loss) after taxation is also the total comprehensive income for the
year.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued
in the year (2024: none).
The notes on pages 67 to 79 form an integral part of these accounts.
Section 3: Financial Statements
Income Statement
for the year ended 30 June 2025
2025 2024
Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Losses on investments held at fair value through pro t or loss 2 – (2,408) (2,408) – (833) (833)
Reversal of impairment provision/(impairment provision) on
investments held at amortised cost – 235 235 – (413) (413)
Income from investments 3 4,053 – 4,053 3,320 – 3,320
Other interest receivable and similar income 3 307 – 307 167 – 167
Gross return/(loss) 4,360 (2,173) 2,187 3,487 (1,246) 2,241
Investment management fees 4 (309) (309) (618) (340) (340) (680)
Administrative expenses 5 (647) – (647) (497) – (497)
Transaction costs – – – – (15) (15)
Net return/(loss) before taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Taxation 6 – – – – – –
Net return/(loss) after taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Return/(loss) per share (pence) 7 4.15 (3.02) 1.13 3.16 (1.91) 1.25
The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent
supplementary information prepared under guidance issued by The Association of Investment Companies. The Company has no other
items of other comprehensive income, and therefore the net return/(loss) after taxation is also the total comprehensive income for the
year.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued
in the year (2024: none).
The notes on pages 67 to 79 form an integral part of these accounts.
Called-up
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2023 853 10,571 72,319 3,019 1,991 88,753
Repurchase of the Company’s own shares into treasury – – (1,409) – – (1,409)
Net (loss)/return after taxation – – – (1,601) 2,650 1,049
Dividends paid in the year 8 – – – – (1,934) (1,934)
At 30 June 2024 853 10,571 70,910 1,418 2,707 86,459
Repurchase of the Company’s own shares into treasury – – (1,471) – – (1,471)
Net (loss)/return after taxation – – – (2,482) 3,404 922
Dividends paid in the year 8 – – – – (2,423) (2,423)
At 30 June 2025 14 853 10,571 69,439 (1,064) 3,688 83,487
The notes on pages 67 to 79 form an integral part of these accounts.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
64
Section 3: Financial Statements
Statement of Changes in Equity
for the year ended 30 June 2025
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2023 853 10,571 72,319 3,019 1,991 88,753
Repurchase of the Company’s own shares into treasury – – (1,409) – – (1,409)
Net (loss)/return after taxation – – – (1,601) 2,650 1,049
Dividends paid in the year 8 – – – – (1,934) (1,934)
At 30 June 2024 853 10,571 70,910 1,418 2,707 86,459
Repurchase of the Company’s own shares into treasury – – (1,471) – – (1,471)
Net (loss)/return after taxation – – – (2,482) 3,404 922
Dividends paid in the year 8 – – – – (2,423) (2,423)
At 30 June 2025 14 853 10,571 69,439 (1,064) 3,688 83,487
The notes on pages 67 to 79 form an integral part of these accounts.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
64
Section 3: Financial Statements
Statement of Changes in Equity
for the year ended 30 June 2025
Restated
2025 2024
Note £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss* 9 51,781 58,781
Investments held at amortised cost* 9 21,700 24,072
73,481 82,853
Current assets
Debtors 10 423 562
Current asset investments 11 9,009 3,106
Cash at bank and in hand 1,057 514
10,489 4,182
Current liabilities
Creditors: amounts falling due within one year 12 (483) (576)
Net current assets 10,006 3,606
Total assets less current liabilities 83,487 86,459
Net assets 83,487 86,459
Capital and reserves
Called-up share capital 13 853 853
Share premium 14 10,571 10,571
Special reserve 14 69,439 70,910
Capital reserves 14 (1,064) 1,418
Revenue reserve 14 3,688 2,707
Total equity shareholders’ funds 83,487 86,459
Net asset value per share (pence) 15 102.94 104.13
*
For details of the prior period restatement, please refer to note 1(j).
These accounts were approved and authorised for issue by the Board of directors on 28 October 2025 and signed on its behalf by:
Susannah Nicklin
Chair
The notes on pages 67 to 79 form an integral part of these accounts.
Registered in England and Wales as a public company limited by shares
Company registration number: 12902443
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 65
Section 3: Financial Statements
Balance Sheet
at 30 June 2025
2025 2024
Note £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss* 9 51,781 58,781
Investments held at amortised cost* 9 21,700 24,072
73,481 82,853
Current assets
Debtors 10 423 562
Current asset investments 11 9,009 3,106
Cash at bank and in hand 1,057 514
10,489 4,182
Current liabilities
Creditors: amounts falling due within one year 12 (483) (576)
Net current assets 10,006 3,606
Total assets less current liabilities 83,487 86,459
Net assets 83,487 86,459
Capital and reserves
Called-up share capital 13 853 853
Share premium 14 10,571 10,571
Special reserve 14 69,439 70,910
Capital reserves 14 (1,064) 1,418
Revenue reserve 14 3,688 2,707
Total equity shareholders’ funds 83,487 86,459
Net asset value per share (pence) 15 102.94 104.13
*
For details of the prior period restatement, please refer to note 1(j).
These accounts were approved and authorised for issue by the Board of directors on 28 October 2025 and signed on its behalf by:
Susannah Nicklin
Chair
The notes on pages 67 to 79 form an integral part of these accounts.
Registered in England and Wales as a public company limited by shares
Company registration number: 12902443
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025 65
Section 3: Financial Statements
Balance Sheet
at 30 June 2025
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
66
Section 3: Financial Statements
Cash Flow Statement
for the year ended 30 June 2025
2025 2024
Note £’000 £’000
Net cash in ow from operating activities 16 2,878 1,957
Investing activities
Purchases of investments (5,994) (6,415)
Sales of investments 13,452 9,306
Net cash in ow from investing activities 7,458 2,891
Net cash in ow before nancing 10,336 4,848
Financing activities
Dividend paid (2,423) (1,934)
Repurchase of the Company’s own shares into treasury (1,467) (1,383)
Net cash out ow from nancing activities (3,890) (3,317)
Net cash in ow in the year 6,446 1,531
Cash and cash equivalents at the beginning of the year 3,620 2,089
Net cash in ow in the year 6,446 1,531
Cash and cash equivalents at the end of the year 10,066 3,620
Cash and cash equivalents comprise:
Money market funds 11 9,009 3,106
Cash at bank and in hand 1,057 514
Cash and cash equivalents at the end of the year 10,066 3,620
Included in net cash in ow from operating activities are dividends received amounting to £1,230,000 (year ended 30 June 2024:
£1,013,000), income from debt securities amounting to £2,505,000 (year ended 30 June 2024: £1,955,000) and other interest receivable
and similar income amounting to £29,000 (year ended 30 June 2024: £33,000).
The notes on pages 67 to 79 form an integral part of these accounts.
66
Section 3: Financial Statements
Cash Flow Statement
for the year ended 30 June 2025
2025 2024
Note £’000 £’000
Net cash in ow from operating activities 16 2,878 1,957
Investing activities
Purchases of investments (5,994) (6,415)
Sales of investments 13,452 9,306
Net cash in ow from investing activities 7,458 2,891
Net cash in ow before nancing 10,336 4,848
Financing activities
Dividend paid (2,423) (1,934)
Repurchase of the Company’s own shares into treasury (1,467) (1,383)
Net cash out ow from nancing activities (3,890) (3,317)
Net cash in ow in the year 6,446 1,531
Cash and cash equivalents at the beginning of the year 3,620 2,089
Net cash in ow in the year 6,446 1,531
Cash and cash equivalents at the end of the year 10,066 3,620
Cash and cash equivalents comprise:
Money market funds 11 9,009 3,106
Cash at bank and in hand 1,057 514
Cash and cash equivalents at the end of the year 10,066 3,620
Included in net cash in ow from operating activities are dividends received amounting to £1,230,000 (year ended 30 June 2024:
£1,013,000), income from debt securities amounting to £2,505,000 (year ended 30 June 2024: £1,955,000) and other interest receivable
and similar income amounting to £29,000 (year ended 30 June 2024: £33,000).
The notes on pages 67 to 79 form an integral part of these accounts.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
67
Section 3: Financial Statements
1. Accounting policies
(a) Basis of accounting
Schroder BSC Social Impact Trust plc (“the Company”) is registered in England and Wales as a public company limited by shares. The
Company's registered o ce is 1 London Wall Place, London EC2Y 5AU.
The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice (“UK
GAAP”), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard applicable in the UK
and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment Trust Companies and
Venture Capital Trusts” (the “SORP”) issued by the Association of Investment Companies in July 2022. All of the Company's operations
are of a continuing nature.
The directors have assessed the principal risks, the impact of the emerging risks and uncertainties and the matters referred to in the
viability statement insofar as they apply within the going concern assessment period, being the period to 31 December 2026, which is
at least 12 months from the date of approval of the nancial statements.
The directors have taken into consideration the controls and monitoring processes in place, the Company’s level of working capital,
undrawn commitments and other payables, the level of operating expenses (a signi cant proportion which are variable costs and
would reduce in the event of a market downturn), the Company’s cash ow forecasts and the liquidity of the Company’s investments.
The directors have assessed the timing and quantum of cash ows from an orderly realisation of assets in the event that liquidity is
required to be increased during the going concern assessment period. Additionally, the directors have considered the risk/impact of
elevated and sustained in ation and interest rates and performed stress tests assessing the impact of a 50% fall in the market prices of
the portfolio.
These factors do not a ect the Board’s conclusions in respect of going concern as they believe that the Company has su cient assets
to continue in operational existence and satisfy liabilities as they fall due.
The Company is undertaking a strategic review. The strategic review remains ongoing and given the potential for structural change, the
directors consider that this introduces material uncertainty over the Company’s future operations within the period that going concern
is being assessed. The Board further notes that any change to investment policy and structure would be subject to the shareholders’
approval and therefore not guaranteed. This indicates that a material uncertainty exists that may cast signi cant doubt on the
Company's ability to continue as a going concern. If shareholders vote for the Company not to continue operating in its normal course
of business, then the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
The Board intends to convene a general meeting prior to the AGM in 2026, and ahead of any Continuation Resolution, to table
recommended proposals on the future of the Company. Although the directors will be looking to put forward proposals that have the
broad support of shareholders, there can be no assurance that the proposals are accepted, or that any Continuation Resolution, should
it be triggered, will pass.
The directors believe the use of the going concern basis is appropriate, as they believe that the Company has su cient assets to
continue in existence and satisfy liabilities as they fall due although the Board recognises that this conclusion is subject to the
outcomes of the strategic review and shareholder approvals.
The nancial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
The accounts are presented in sterling and amounts have been rounded to the nearest thousand.
The accounting policies applied to these accounts are consistent with those applied in the accounts for the year ended 30 June 2024.
Certain judgements, estimates and assumptions have been required in valuing the Company’s investments and these are detailed in
note 20 on pages 75 to 76.
(b) Valuation of investments
The Company’s business is investing in nancial assets with a view to pro ting from their total return in the form of income and capital
growth. Investments with a xed coupon and redemption amount are valued at amortised cost less any impairments in accordance
with FRS 102. Other nancial assets are managed and their performance evaluated on a fair value basis, in accordance with a
documented investment objective and information is provided internally on that basis to the Company’s Board of Directors. Upon initial
recognition, these investments are designated by the Company as “held at fair value through pro t or loss”, included initially at cost and
subsequently at fair value using the methodology below. This valuation process is consistent with International Private Equity and
Venture Capital Guidelines issued in December 2022, which are intended to set out current best practice on the valuation of Private
Capital investments.
(i) Quoted bid prices for investments traded in active markets.
(ii) The price of a recent investment, where there is considered to have been no material change in fair value.
(iii) Where it is felt that a milestone has been reached or a target achieved, the Company may use the price of a recent investment
adjusted to re ect that change.
(iv) Investments in funds may be valued using the NAV per unit with an appropriate discount or premium applied to arrive at a unit
price.
Notes to the Financial Statements
Section 3: Financial Statements
1. Accounting policies
(a) Basis of accounting
Schroder BSC Social Impact Trust plc (“the Company”) is registered in England and Wales as a public company limited by shares. The
Company's registered o ce is 1 London Wall Place, London EC2Y 5AU.
The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice (“UK
GAAP”), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard applicable in the UK
and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment Trust Companies and
Venture Capital Trusts” (the “SORP”) issued by the Association of Investment Companies in July 2022. All of the Company's operations
are of a continuing nature.
The directors have assessed the principal risks, the impact of the emerging risks and uncertainties and the matters referred to in the
viability statement insofar as they apply within the going concern assessment period, being the period to 31 December 2026, which is
at least 12 months from the date of approval of the nancial statements.
The directors have taken into consideration the controls and monitoring processes in place, the Company’s level of working capital,
undrawn commitments and other payables, the level of operating expenses (a signi cant proportion which are variable costs and
would reduce in the event of a market downturn), the Company’s cash ow forecasts and the liquidity of the Company’s investments.
The directors have assessed the timing and quantum of cash ows from an orderly realisation of assets in the event that liquidity is
required to be increased during the going concern assessment period. Additionally, the directors have considered the risk/impact of
elevated and sustained in ation and interest rates and performed stress tests assessing the impact of a 50% fall in the market prices of
the portfolio.
These factors do not a ect the Board’s conclusions in respect of going concern as they believe that the Company has su cient assets
to continue in operational existence and satisfy liabilities as they fall due.
The Company is undertaking a strategic review. The strategic review remains ongoing and given the potential for structural change, the
directors consider that this introduces material uncertainty over the Company’s future operations within the period that going concern
is being assessed. The Board further notes that any change to investment policy and structure would be subject to the shareholders’
approval and therefore not guaranteed. This indicates that a material uncertainty exists that may cast signi cant doubt on the
Company's ability to continue as a going concern. If shareholders vote for the Company not to continue operating in its normal course
of business, then the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
The Board intends to convene a general meeting prior to the AGM in 2026, and ahead of any Continuation Resolution, to table
recommended proposals on the future of the Company. Although the directors will be looking to put forward proposals that have the
broad support of shareholders, there can be no assurance that the proposals are accepted, or that any Continuation Resolution, should
it be triggered, will pass.
The directors believe the use of the going concern basis is appropriate, as they believe that the Company has su cient assets to
continue in existence and satisfy liabilities as they fall due although the Board recognises that this conclusion is subject to the
outcomes of the strategic review and shareholder approvals.
The nancial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
The accounts are presented in sterling and amounts have been rounded to the nearest thousand.
The accounting policies applied to these accounts are consistent with those applied in the accounts for the year ended 30 June 2024.
Certain judgements, estimates and assumptions have been required in valuing the Company’s investments and these are detailed in
note 20 on pages 75 to 76.
(b) Valuation of investments
The Company’s business is investing in nancial assets with a view to pro ting from their total return in the form of income and capital
growth. Investments with a xed coupon and redemption amount are valued at amortised cost less any impairments in accordance
with FRS 102. Other nancial assets are managed and their performance evaluated on a fair value basis, in accordance with a
documented investment objective and information is provided internally on that basis to the Company’s Board of Directors. Upon initial
recognition, these investments are designated by the Company as “held at fair value through pro t or loss”, included initially at cost and
subsequently at fair value using the methodology below. This valuation process is consistent with International Private Equity and
Venture Capital Guidelines issued in December 2022, which are intended to set out current best practice on the valuation of Private
Capital investments.
(i) Quoted bid prices for investments traded in active markets.
(ii) The price of a recent investment, where there is considered to have been no material change in fair value.
(iii) Where it is felt that a milestone has been reached or a target achieved, the Company may use the price of a recent investment
adjusted to re ect that change.
(iv) Investments in funds may be valued using the NAV per unit with an appropriate discount or premium applied to arrive at a unit
price.
Notes to the Financial Statements
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
68
Section 3: Financial Statements
(v) Price earning multiples, based on comparable businesses.
(vi) Industry benchmarks, where available.
(vii) Discounted Cash Flow techniques, where reliable estimates of cash ows are available.
The above valuation methodologies are deemed to re ect the impact of climate change risk on the investments held.
Purchases and sales of quoted investments are accounted for on a trade date basis. Purchases and sales of unquoted investments are
recognised when the related contract becomes unconditional.
(c) Accounting for reserves
Gains and losses on sales of investments and the management fee or nance costs allocated to capital, are included in the Income
Statement and dealt with in capital reserves. Increases and decreases in the valuation of investments held at the year end and
impairment provision of investments, are included in the Income Statement and in capital reserves within “Investment holding gains
and losses”.
For shares that are repurchased and held in treasury, the full cost is charged to the special reserve.
For a breakdown of reserves please refer to note 14 on pages 73 to 74.
(d) Income
Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capital
in nature, in which case it is included in capital.
Income from limited partnerships will be included in revenue on the income declaration date.
Income from xed interest debt securities is recognised using the e ective interest method.
Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.
(e) Expenses
All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the Income Statement
with the following exceptions:
• The management fee is allocated 50% to revenue and 50% to capital in line with the Board's expected long-term split of revenue and
capital return from the Company’s investment portfolio.
• Expenses incidental to the purchase of an investment are charged to capital. These expenses are commonly referred to as transaction
costs and comprise brokerage commission and stamp duty. Details of transaction costs are given in note 9(c) on page 72.
The underlying costs incurred by the Company’s investments in collective funds are not included in the various expense disclosures.
(f) Financial instruments
Cash at bank and in hand comprises cash held in the bank. Current asset investments comprise investments in money market funds
and highly liquid investments which are readily convertible to a known amount of cash and are subject to insigni cant risk of changes in
value.
Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with
debtors reduced by appropriate allowances for estimated irrecoverable amounts.
Bank loans and overdrafts are initially measured at fair value and subsequently measured at amortised cost. They are recorded at the
proceeds received net of direct issue costs. The Company had no bank loans or overdrafts at 30 June 2025 (2024: nil).
(g) Taxation
Taxation on ordinary activities comprises amounts expected to be received or paid.
Tax relief is allocated to expenses charged to the capital column of the Income Statement on the “marginal basis”. On this basis, if
taxable income is capable of being entirely o set by revenue expenses, then no tax relief is transferred to the capital column.
Deferred tax is provided on all timing di erences that have originated but not reversed by the accounting date.
Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it
is probable that taxable pro ts will be available against which those timing di erences can be utilised.
Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to
reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an
undiscounted basis.
As the Company continues to meet the conditions required to retain its status as an Investment Trust, any capital gains or losses
arising on the revaluation or disposal of investments are exempt.
(h) Value added tax (VAT)
Expenses are disclosed inclusive of the related irrecoverable VAT.
68
Section 3: Financial Statements
(v) Price earning multiples, based on comparable businesses.
(vi) Industry benchmarks, where available.
(vii) Discounted Cash Flow techniques, where reliable estimates of cash ows are available.
The above valuation methodologies are deemed to re ect the impact of climate change risk on the investments held.
Purchases and sales of quoted investments are accounted for on a trade date basis. Purchases and sales of unquoted investments are
recognised when the related contract becomes unconditional.
(c) Accounting for reserves
Gains and losses on sales of investments and the management fee or nance costs allocated to capital, are included in the Income
Statement and dealt with in capital reserves. Increases and decreases in the valuation of investments held at the year end and
impairment provision of investments, are included in the Income Statement and in capital reserves within “Investment holding gains
and losses”.
For shares that are repurchased and held in treasury, the full cost is charged to the special reserve.
For a breakdown of reserves please refer to note 14 on pages 73 to 74.
(d) Income
Dividends receivable are included in revenue on an ex-dividend basis except where, in the opinion of the Board, the dividend is capital
in nature, in which case it is included in capital.
Income from limited partnerships will be included in revenue on the income declaration date.
Income from xed interest debt securities is recognised using the e ective interest method.
Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest.
(e) Expenses
All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the Income Statement
with the following exceptions:
• The management fee is allocated 50% to revenue and 50% to capital in line with the Board's expected long-term split of revenue and
capital return from the Company’s investment portfolio.
• Expenses incidental to the purchase of an investment are charged to capital. These expenses are commonly referred to as transaction
costs and comprise brokerage commission and stamp duty. Details of transaction costs are given in note 9(c) on page 72.
The underlying costs incurred by the Company’s investments in collective funds are not included in the various expense disclosures.
(f) Financial instruments
Cash at bank and in hand comprises cash held in the bank. Current asset investments comprise investments in money market funds
and highly liquid investments which are readily convertible to a known amount of cash and are subject to insigni cant risk of changes in
value.
Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with
debtors reduced by appropriate allowances for estimated irrecoverable amounts.
Bank loans and overdrafts are initially measured at fair value and subsequently measured at amortised cost. They are recorded at the
proceeds received net of direct issue costs. The Company had no bank loans or overdrafts at 30 June 2025 (2024: nil).
(g) Taxation
Taxation on ordinary activities comprises amounts expected to be received or paid.
Tax relief is allocated to expenses charged to the capital column of the Income Statement on the “marginal basis”. On this basis, if
taxable income is capable of being entirely o set by revenue expenses, then no tax relief is transferred to the capital column.
Deferred tax is provided on all timing di erences that have originated but not reversed by the accounting date.
Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it
is probable that taxable pro ts will be available against which those timing di erences can be utilised.
Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to
reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an
undiscounted basis.
As the Company continues to meet the conditions required to retain its status as an Investment Trust, any capital gains or losses
arising on the revaluation or disposal of investments are exempt.
(h) Value added tax (VAT)
Expenses are disclosed inclusive of the related irrecoverable VAT.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
69
Section 3: Financial Statements
(i) Dividends payable
In accordance with FRS 102, dividends payable are included in the accounts in the year in which they are paid. Part, or all of any
dividend declared may be designated as an “interest distribution”, calculated in accordance with the investment trust income streaming
rules and paid without deduction of any income tax.
(j) Prior Period Adjustment
An unquoted investment with a value of £3,540,000 that was classi ed as ‘Investments held at fair value through pro t or loss’ has been
restated to be classi ed as ‘Investments held at amortised cost’ for the year ended 30 June 2024. As such investments held at fair value
through pro t or loss for the year ended 30 June 2024 has decreased by £3,540,000, and investments held at amortised cost have
increased by the same amount. There is no impact on other line items in the Balance Sheet, no impact on net asset value, nor on pro t
and loss.
2. Losses on investments held at fair value through profit or loss 2025 2024
£’000 £’000
Gains/(losses) on sales of investments based on historic cost 69 (192)
Amounts recognised in investment holding gains and losses in the previous year in respect of investments sold in the year (126) 304
(Losses)/gains on sales of investments based on the carrying value at the previous balance sheet date (57) 112
Net movement in investment holding losses (2,351) (945)
Losses on investments held at fair value in the current year through pro t or loss (2,408) (833)
3. Income 2025 2024
£’000 £’000
Income from investments
UK dividends 1,042 854
Overseas dividends 173 173
Interest income from debt securities and other nancial assets 2,838 2,293
4,053 3,320
Other interest receivable and similar income
Deposit interest 290 147
Other income 17 20
307 167
Total income 4,360 3,487
4. Investment management fees 2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fees 309 309 618 340 340 680
The basis for calculating the investment management fees is set out in the Report of the Directors on page 43 and details of all
amounts payable to the managers are given in note 18 on page 75.
5. Administrative expenses 2025 2024
£’000 £’000
Other administrative expenses 433 292
Directors’ fees
1
145 139
Auditor’s remuneration for the audit of the Company’s annual accounts
2
69 66
647 497
1
Full details are given in the Directors' Remuneration Report on pages 53 to 55.
2
Includes VAT amounting to £12,000 (2024: £11,000).
Section 3: Financial Statements
(i) Dividends payable
In accordance with FRS 102, dividends payable are included in the accounts in the year in which they are paid. Part, or all of any
dividend declared may be designated as an “interest distribution”, calculated in accordance with the investment trust income streaming
rules and paid without deduction of any income tax.
(j) Prior Period Adjustment
An unquoted investment with a value of £3,540,000 that was classi ed as ‘Investments held at fair value through pro t or loss’ has been
restated to be classi ed as ‘Investments held at amortised cost’ for the year ended 30 June 2024. As such investments held at fair value
through pro t or loss for the year ended 30 June 2024 has decreased by £3,540,000, and investments held at amortised cost have
increased by the same amount. There is no impact on other line items in the Balance Sheet, no impact on net asset value, nor on pro t
and loss.
2. Losses on investments held at fair value through profit or loss 2025 2024
£’000 £’000
Gains/(losses) on sales of investments based on historic cost 69 (192)
Amounts recognised in investment holding gains and losses in the previous year in respect of investments sold in the year (126) 304
(Losses)/gains on sales of investments based on the carrying value at the previous balance sheet date (57) 112
Net movement in investment holding losses (2,351) (945)
Losses on investments held at fair value in the current year through pro t or loss (2,408) (833)
3. Income 2025 2024
£’000 £’000
Income from investments
UK dividends 1,042 854
Overseas dividends 173 173
Interest income from debt securities and other nancial assets 2,838 2,293
4,053 3,320
Other interest receivable and similar income
Deposit interest 290 147
Other income 17 20
307 167
Total income 4,360 3,487
4. Investment management fees 2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fees 309 309 618 340 340 680
The basis for calculating the investment management fees is set out in the Report of the Directors on page 43 and details of all
amounts payable to the managers are given in note 18 on page 75.
5. Administrative expenses 2025 2024
£’000 £’000
Other administrative expenses 433 292
Directors’ fees
1
145 139
Auditor’s remuneration for the audit of the Company’s annual accounts
2
69 66
647 497
1
Full details are given in the Directors' Remuneration Report on pages 53 to 55.
2
Includes VAT amounting to £12,000 (2024: £11,000).
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
70
Section 3: Financial Statements
6. Taxation
(a) Analysis of tax charge for the year 2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Taxation for the year – – – – – –
The Company has no corporation tax liability for the year ended 30 June 2025 (2024: nil).
(b) Factors affecting tax charge for the year
The factors a ecting the current tax charge for the year are as follows:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net return/(loss) before taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Net return/(loss) before taxation multiplied by the Company’s applicable
rate of corporation tax for the year of 25% (2024: 25%) 851 (621) 230 663 (400) 263
E ects of:
Capital losses on investments – 543 543 – 311 311
Income not chargeable to corporation tax (270) – (270) (225) – (225)
Tax deductible interest distribution (782) – (782) (610) – (610)
Expenses not utilised in the current period 201 78 279 172 85 257
Expenses not deductible for corporation tax purposes – – – – 4 4
Taxation on ordinary activities – – – – – –
(c) Deferred tax
The Company has an unrecognised deferred tax asset of £686,000 (2024: £590,000) based on a prospective corporation tax rate of
25% (2024: 25%).
This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of
the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been
recognised in the accounts.
Given the Company’s status as an Investment Trust Company, no provision has been made for deferred tax on any capital gains or
losses arising on the revaluation or disposal of investments.
7. Return per share 2025 2024
£’000 £’000
Revenue return 3,404 2,650
Capital loss (2,482) (1,601)
Total return 922 1,049
Weighted average number of shares in issue during the year 82,103,774 83,834,790
Revenue return per share (pence) 4.15 3.16
Capital loss per share (pence) (3.02) (1.91)
Total return per share (pence) 1.13 1.25
There are no dilutive instruments, the return per share is actual return.
70
Section 3: Financial Statements
6. Taxation
(a) Analysis of tax charge for the year 2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Taxation for the year – – – – – –
The Company has no corporation tax liability for the year ended 30 June 2025 (2024: nil).
(b) Factors affecting tax charge for the year
The factors a ecting the current tax charge for the year are as follows:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net return/(loss) before taxation 3,404 (2,482) 922 2,650 (1,601) 1,049
Net return/(loss) before taxation multiplied by the Company’s applicable
rate of corporation tax for the year of 25% (2024: 25%) 851 (621) 230 663 (400) 263
E ects of:
Capital losses on investments – 543 543 – 311 311
Income not chargeable to corporation tax (270) – (270) (225) – (225)
Tax deductible interest distribution (782) – (782) (610) – (610)
Expenses not utilised in the current period 201 78 279 172 85 257
Expenses not deductible for corporation tax purposes – – – – 4 4
Taxation on ordinary activities – – – – – –
(c) Deferred tax
The Company has an unrecognised deferred tax asset of £686,000 (2024: £590,000) based on a prospective corporation tax rate of
25% (2024: 25%).
This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of
the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been
recognised in the accounts.
Given the Company’s status as an Investment Trust Company, no provision has been made for deferred tax on any capital gains or
losses arising on the revaluation or disposal of investments.
7. Return per share 2025 2024
£’000 £’000
Revenue return 3,404 2,650
Capital loss (2,482) (1,601)
Total return 922 1,049
Weighted average number of shares in issue during the year 82,103,774 83,834,790
Revenue return per share (pence) 4.15 3.16
Capital loss per share (pence) (3.02) (1.91)
Total return per share (pence) 1.13 1.25
There are no dilutive instruments, the return per share is actual return.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
71
Section 3: Financial Statements
8. Dividends 2025 2024
£’000 £’000
2024 interim dividend of 2.94p (2023: 2.30p) paid out of revenue pro ts
1
2,423 1,934
2025 2024
£’000 £’000
2025 interim dividend proposed of 3.76p (2024: 2.94p), to be paid out of revenue pro ts 3,049 2,439
1
The 2024 interim dividend amounted to £2,439,000. However the amount actually paid was £2,423,000, as shares were repurchased into treasury after the accounting
date but prior to the dividend record date.
The 2025 interim dividend is made up wholly of an interest distribution of 3.76p (2024: 2.94p, wholly of interest).
The interim dividend amounting to £3,049,471 (2024: £2,439,000) is the amount used for the basis of determining whether the
Company has satis ed the distribution requirements of Section 1158 of the Corporation Tax Act 2010. The revenue available for
distribution by way of dividend for the year is £3,404,000 (2024: £2,650,000).
9. Fixed assets
(a) Movement in investments Restated
2025 2024
Investments Investments
held at Investments held at Investments
fair value held at fair value held at
through amortised through amortised
pro t or loss cost Total pro t or loss cost Total
£’000 £’000 £’000 £’000 £’000 £’000
Opening book cost 55,067 24,072 79,139 59,844 22,583 82,427
Opening investment holding gains 3,714 – 3,714 4,355 – 4,355
Opening fair value 58,781 24,072 82,853 64,199 22,583 86,782
Purchases at cost 6,178 75 6,253 2,063* 4,560* 6,623
Sales proceeds (10,770) (2,682) (13,452) (6,648) (2,658) (9,306)
Reversal of impairment provision/(impairment provision) on
investments held at amortised cost – 235 235 – (413) (413)
Losses on investments held at fair value through pro t or loss (2,408) – (2,408) (833) – (833)
Closing fair value 51,781 21,700 73,481 58,781 24,072 82,853
Closing book cost 50,544 21,700 72,244 55,067 24,072 79,139
Closing investment holding gains 1,237 – 1,237 3,714 – 3,714
Closing fair value 51,781 21,700 73,481 58,781 24,072 82,853
*
For details of the prior period restatement, please refer to note 1(j).
The Company received £13,452,000 (2024: £9,306,000) from disposal of investments in the year. The book cost of these investments
when they were purchased was £13,383,000 (2024: £9,911,000) These investments have been revalued over time and until they were
sold any unrealised gains/losses were included in the value of the investments.
(b) Unquoted investments, including investments quoted in inactive markets
Opening Closing
valuation valuation
at 30 June at 30 June
Material revaluations of unquoted investments during 2024 Purchases Revaluation Distributions 2025
the year ended 30 June 2025 £’000 £’000 £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP 11,482 567 (978) (6,003) 5,068
Man GPM RI Community Housing 1 LP 8,168 1,159 (469) – 8,858
Resonance Real Lettings Property Fund LP 5,779 – (407) (1,804) 3,568
Bridges Social Outcomes Fund II LP 2,722 272 (316) (1,006) 1,672
Section 3: Financial Statements
8. Dividends 2025 2024
£’000 £’000
2024 interim dividend of 2.94p (2023: 2.30p) paid out of revenue pro ts
1
2,423 1,934
2025 2024
£’000 £’000
2025 interim dividend proposed of 3.76p (2024: 2.94p), to be paid out of revenue pro ts 3,049 2,439
1
The 2024 interim dividend amounted to £2,439,000. However the amount actually paid was £2,423,000, as shares were repurchased into treasury after the accounting
date but prior to the dividend record date.
The 2025 interim dividend is made up wholly of an interest distribution of 3.76p (2024: 2.94p, wholly of interest).
The interim dividend amounting to £3,049,471 (2024: £2,439,000) is the amount used for the basis of determining whether the
Company has satis ed the distribution requirements of Section 1158 of the Corporation Tax Act 2010. The revenue available for
distribution by way of dividend for the year is £3,404,000 (2024: £2,650,000).
9. Fixed assets
(a) Movement in investments Restated
2025 2024
Investments Investments
held at Investments held at Investments
fair value held at fair value held at
through amortised through amortised
pro t or loss cost Total pro t or loss cost Total
£’000 £’000 £’000 £’000 £’000 £’000
Opening book cost 55,067 24,072 79,139 59,844 22,583 82,427
Opening investment holding gains 3,714 – 3,714 4,355 – 4,355
Opening fair value 58,781 24,072 82,853 64,199 22,583 86,782
Purchases at cost 6,178 75 6,253 2,063* 4,560* 6,623
Sales proceeds (10,770) (2,682) (13,452) (6,648) (2,658) (9,306)
Reversal of impairment provision/(impairment provision) on
investments held at amortised cost – 235 235 – (413) (413)
Losses on investments held at fair value through pro t or loss (2,408) – (2,408) (833) – (833)
Closing fair value 51,781 21,700 73,481 58,781 24,072 82,853
Closing book cost 50,544 21,700 72,244 55,067 24,072 79,139
Closing investment holding gains 1,237 – 1,237 3,714 – 3,714
Closing fair value 51,781 21,700 73,481 58,781 24,072 82,853
*
For details of the prior period restatement, please refer to note 1(j).
The Company received £13,452,000 (2024: £9,306,000) from disposal of investments in the year. The book cost of these investments
when they were purchased was £13,383,000 (2024: £9,911,000) These investments have been revalued over time and until they were
sold any unrealised gains/losses were included in the value of the investments.
(b) Unquoted investments, including investments quoted in inactive markets
Opening Closing
valuation valuation
at 30 June at 30 June
Material revaluations of unquoted investments during 2024 Purchases Revaluation Distributions 2025
the year ended 30 June 2025 £’000 £’000 £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP 11,482 567 (978) (6,003) 5,068
Man GPM RI Community Housing 1 LP 8,168 1,159 (469) – 8,858
Resonance Real Lettings Property Fund LP 5,779 – (407) (1,804) 3,568
Bridges Social Outcomes Fund II LP 2,722 272 (316) (1,006) 1,672
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
72
Section 3: Financial Statements
Opening Closing
valuation valuation
at 30 June at 30 June
Material revaluations of unquoted investments during 2023 Purchases Revaluation Distributions 2024
the year ended 30 June 2024 £’000 £’000 £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP (formerly Bridges Evergreen Capital LP) 12,750 – (1,268) – 11,482
Resonance Real Lettings Property Fund LP 5,476 – 303 – 5,779
Bridges Social Outcomes Fund II LP 4,271 219 134 (1,902) 2,722
2025
Book Sales Realised
cost proceeds gain/(loss)
Material disposals of unquoted investments during the year £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP 6,003 6,003 –
Charity Bank Co-Invest Portfolio: Abbey eld York 3.6% 12/05/2049 2,000 2,000 –
Resonance Real Lettings Property Fund LP 1,804 1,804 –
Bridges Social Outcomes Fund II LP 1,006 1,006 –
2024
Book Sales Realised
cost proceeds gain/(loss)
Material disposals of unquoted investments during the year £’000 £’000 £’000
Investment
Charity Bank Co Invest Portfolio: Sue Ryder FRN 04/12/2043 2,440 2,440 –
Bridges Social Outcomes Fund II LP 1,902 1,902 –
Community Investment Fund 1,220 1,220 –
(c) Transaction costs
The following transaction costs, comprising stamp duty and legal fees, were incurred in the year:
2025 2024
£’000 £’000
On acquisitions – 15
On disposals 4 –
4 15
10. Current assets 2025 2024
Debtors £’000 £’000
Dividends and interest receivable 409 545
Other debtors 14 17
423 562
The directors consider that the carrying amount of debtors approximates to their fair value.
11. Current asset investments 2025 2024
£’000 £’000
Money market funds 9,009 3,106
9,009 3,106
As at 30 June 2025, the Company held units in the HSBC Sterling ESG Liquidity Fund with a fair value of £9,009,000 (2024: £3,106,000).
72
Section 3: Financial Statements
Opening Closing
valuation valuation
at 30 June at 30 June
Material revaluations of unquoted investments during 2023 Purchases Revaluation Distributions 2024
the year ended 30 June 2024 £’000 £’000 £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP (formerly Bridges Evergreen Capital LP) 12,750 – (1,268) – 11,482
Resonance Real Lettings Property Fund LP 5,476 – 303 – 5,779
Bridges Social Outcomes Fund II LP 4,271 219 134 (1,902) 2,722
2025
Book Sales Realised
cost proceeds gain/(loss)
Material disposals of unquoted investments during the year £’000 £’000 £’000
Investment
Bridges Inclusive Growth Fund LP 6,003 6,003 –
Charity Bank Co-Invest Portfolio: Abbey eld York 3.6% 12/05/2049 2,000 2,000 –
Resonance Real Lettings Property Fund LP 1,804 1,804 –
Bridges Social Outcomes Fund II LP 1,006 1,006 –
2024
Book Sales Realised
cost proceeds gain/(loss)
Material disposals of unquoted investments during the year £’000 £’000 £’000
Investment
Charity Bank Co Invest Portfolio: Sue Ryder FRN 04/12/2043 2,440 2,440 –
Bridges Social Outcomes Fund II LP 1,902 1,902 –
Community Investment Fund 1,220 1,220 –
(c) Transaction costs
The following transaction costs, comprising stamp duty and legal fees, were incurred in the year:
2025 2024
£’000 £’000
On acquisitions – 15
On disposals 4 –
4 15
10. Current assets 2025 2024
Debtors £’000 £’000
Dividends and interest receivable 409 545
Other debtors 14 17
423 562
The directors consider that the carrying amount of debtors approximates to their fair value.
11. Current asset investments 2025 2024
£’000 £’000
Money market funds 9,009 3,106
9,009 3,106
As at 30 June 2025, the Company held units in the HSBC Sterling ESG Liquidity Fund with a fair value of £9,009,000 (2024: £3,106,000).
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
73
Section 3: Financial Statements
12. Current liabilities 2025 2024
Creditors: amounts falling due within one year £’000 £’000
Repurchase of the Company’s own shares into treasury awaiting settlement 30 26
Other creditors and accruals 453 550
483 576
The directors consider that the carrying amount of creditors falling due within one year approximates to their fair value.
13. Called-up share capital 2025 2024
£’000 £’000
Ordinary Shares of 1p each, allotted, called up and fully paid:
Opening balance of 83,029,661 (2024: 84,604,866) shares 830 846
Repurchase of 1,926,722 (2024: 1,575,205) shares into treasury (19) (16)
Subtotal of 81,102,939 (2024: 83,029,661) shares 811 830
4,213,647 (2024: 2,286,925) shares held in treasury 42 23
Closing balance
1
853 853
1
Represents 85,316,586 (2024: 85,316,586) shares of 1p each, including 4,213,647 (2024: 2,286,925) held in treasury.
During the year, the Company repurchased 1,926,722 (2024: 1,575,205) of its own shares, nominal value £19,267 (2024: £15,752) to
hold in treasury, representing 2.32% (2024: 1.86%) of the shares outstanding at the beginning of the year. The total consideration paid
for these shares amounted to £1,471,000 (2024: £1,409,000). The reason for these purchases was to seek to manage the volatility of
the share price discount to NAV per share.
14. Reserves Capital & Reserves Gains and Investment
losses on holding
Share Special sales of gains and Revenue
premium
1
reserve
2
investments
3
losses
4
reserve
5
Year ended 30 June 2025 £’000 £’000 £’000 £’000 £’000
Opening balance as at 1 July 2024 10,571 70,910 (2,296) 3,714 2,707
Losses on sales of investments based on the carrying value at the previous
balance sheet date – – (57) – –
Net movement in investment holding losses – – – (2,351) –
Transfer on disposal of investments – – 126 (126) –
Reversal of impairment provision on investments – – 235 – –
Repurchase of the Company’s own shares into treasury – (1,471) – – –
Management fees allocated to capital – – (309) – –
Dividends paid – – – – (2,423)
Retained revenue for the year – – – – 3,404
Closing balance as at 30 June 2025 10,571 69,439 (2,301) 1,237 3,688
1
Share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the nominal
value of shares issued.
2
This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s own
shares.
3
This is a realised (distributable) capital reserve and may be distributed as dividends or used to repurchase the Company’s own shares.
4
This is an undistributable reserve which consists of unrealised gains and losses as a result of revaluations of investments held as at year end.
5
The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
Section 3: Financial Statements
12. Current liabilities 2025 2024
Creditors: amounts falling due within one year £’000 £’000
Repurchase of the Company’s own shares into treasury awaiting settlement 30 26
Other creditors and accruals 453 550
483 576
The directors consider that the carrying amount of creditors falling due within one year approximates to their fair value.
13. Called-up share capital 2025 2024
£’000 £’000
Ordinary Shares of 1p each, allotted, called up and fully paid:
Opening balance of 83,029,661 (2024: 84,604,866) shares 830 846
Repurchase of 1,926,722 (2024: 1,575,205) shares into treasury (19) (16)
Subtotal of 81,102,939 (2024: 83,029,661) shares 811 830
4,213,647 (2024: 2,286,925) shares held in treasury 42 23
Closing balance
1
853 853
1
Represents 85,316,586 (2024: 85,316,586) shares of 1p each, including 4,213,647 (2024: 2,286,925) held in treasury.
During the year, the Company repurchased 1,926,722 (2024: 1,575,205) of its own shares, nominal value £19,267 (2024: £15,752) to
hold in treasury, representing 2.32% (2024: 1.86%) of the shares outstanding at the beginning of the year. The total consideration paid
for these shares amounted to £1,471,000 (2024: £1,409,000). The reason for these purchases was to seek to manage the volatility of
the share price discount to NAV per share.
14. Reserves Capital & Reserves Gains and Investment
losses on holding
Share Special sales of gains and Revenue
premium
1
reserve
2
investments
3
losses
4
reserve
5
Year ended 30 June 2025 £’000 £’000 £’000 £’000 £’000
Opening balance as at 1 July 2024 10,571 70,910 (2,296) 3,714 2,707
Losses on sales of investments based on the carrying value at the previous
balance sheet date – – (57) – –
Net movement in investment holding losses – – – (2,351) –
Transfer on disposal of investments – – 126 (126) –
Reversal of impairment provision on investments – – 235 – –
Repurchase of the Company’s own shares into treasury – (1,471) – – –
Management fees allocated to capital – – (309) – –
Dividends paid – – – – (2,423)
Retained revenue for the year – – – – 3,404
Closing balance as at 30 June 2025 10,571 69,439 (2,301) 1,237 3,688
1
Share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the nominal
value of shares issued.
2
This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s own
shares.
3
This is a realised (distributable) capital reserve and may be distributed as dividends or used to repurchase the Company’s own shares.
4
This is an undistributable reserve which consists of unrealised gains and losses as a result of revaluations of investments held as at year end.
5
The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
74
Section 3: Financial Statements
Capital & Reserves
Gains and Investment
losses on holding
Share Special sales of gains and Revenue
premium
1
reserve
2
investments
3
losses
4
reserve
5
Year ended 30 June 2024 £’000 £’000 £’000 £’000 £’000
Opening balance 10,571 72,319 (1,336) 4,355 1,991
Gains on sales of investments based on the carrying value at the previous
balance sheet date – – 112 – –
Net movement in investment holding losses – – – (945) –
Transfer on disposal of investments – – (304) 304 –
Impairment losses on investments – – (413) – –
Repurchase of the Company’s own shares into treasury – (1,409) – – –
Management fees allocated to capital – – (340) – –
Transaction costs – – (15) – –
Dividends paid – – – – (1,934)
Retained revenue for the year – – – – 2,650
Closing balance 10,571 70,910 (2,296) 3,714 2,707
The Company’s articles of association permit dividend distributions out of realised capital pro ts. Total distributable reserves as at
30 June 2025 were £70,826,000 (30 June 2024: £71,321,000).
1
Share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the nominal
value of shares issued.
2
This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s own
shares.
3
This is a realised (distributable) capital reserve and may be distributed as dividends or used to repurchase the Company’s own shares.
4
This is an undistributable reserve which consists of unrealised gains and losses as a result of revaluations of investments held as at year end.
5
The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
15. Net asset value per share 2025 2024
Net assets attributable to shareholders (£’000) 83,487 86,459
Shares in issue at the year end 81,102,939 83,029,661
Net asset value per share (pence) 102.94 104.13
16. Reconciliation of total return on ordinary activities before finance costs and taxation to net
cash inflow from operating activities 2025 2024
£’000 £’000
Total return before taxation 922 1,049
Add capital loss before taxation 2,482 1,601
Less accumulation dividends
1
and capitalised xed interest (259) (208)
Decrease/(increase) in accrued income 136 (163)
Decrease in other debtors 3 2
(Decrease)/increase in other creditors (97) 31
Management fee and transaction costs allocated to capital (309) (355)
Net cash in ow from operating activities 2,878 1,957
1
Accumulation dividends are capitalised to investments.
74
Section 3: Financial Statements
Capital & Reserves
Gains and Investment
losses on holding
Share Special sales of gains and Revenue
premium
1
reserve
2
investments
3
losses
4
reserve
5
Year ended 30 June 2024 £’000 £’000 £’000 £’000 £’000
Opening balance 10,571 72,319 (1,336) 4,355 1,991
Gains on sales of investments based on the carrying value at the previous
balance sheet date – – 112 – –
Net movement in investment holding losses – – – (945) –
Transfer on disposal of investments – – (304) 304 –
Impairment losses on investments – – (413) – –
Repurchase of the Company’s own shares into treasury – (1,409) – – –
Management fees allocated to capital – – (340) – –
Transaction costs – – (15) – –
Dividends paid – – – – (1,934)
Retained revenue for the year – – – – 2,650
Closing balance 10,571 70,910 (2,296) 3,714 2,707
The Company’s articles of association permit dividend distributions out of realised capital pro ts. Total distributable reserves as at
30 June 2025 were £70,826,000 (30 June 2024: £71,321,000).
1
Share premium is a non distributable reserve and represents the amount by which the fair value of the consideration received from shares issued exceeds the nominal
value of shares issued.
2
This is a distributable capital reserve arising from the cancellation of the share premium, and may be distributed as dividends or used to repurchase the Company’s own
shares.
3
This is a realised (distributable) capital reserve and may be distributed as dividends or used to repurchase the Company’s own shares.
4
This is an undistributable reserve which consists of unrealised gains and losses as a result of revaluations of investments held as at year end.
5
The revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares.
15. Net asset value per share 2025 2024
Net assets attributable to shareholders (£’000) 83,487 86,459
Shares in issue at the year end 81,102,939 83,029,661
Net asset value per share (pence) 102.94 104.13
16. Reconciliation of total return on ordinary activities before finance costs and taxation to net
cash inflow from operating activities 2025 2024
£’000 £’000
Total return before taxation 922 1,049
Add capital loss before taxation 2,482 1,601
Less accumulation dividends
1
and capitalised xed interest (259) (208)
Decrease/(increase) in accrued income 136 (163)
Decrease in other debtors 3 2
(Decrease)/increase in other creditors (97) 31
Management fee and transaction costs allocated to capital (309) (355)
Net cash in ow from operating activities 2,878 1,957
1
Accumulation dividends are capitalised to investments.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
75
Section 3: Financial Statements
17. Uncalled capital commitments
At 30 June 2025, the Company had uncalled capital commitments amounting to £11,825,000 (2024: £12,174,000) in respect of follow-on
investments, which may be drawn down or called by investee entities, subject to standard notice periods.
18. Transactions with the Manager
Under the terms of the Alternative Investment Fund Manager Agreement, the Manager is entitled to receive a management fee. Details
of the basis of the calculation are given in the Directors’ Report on page 43.
The fee payable to the Manager in respect of the year ended 30 June 2025 amounted to £562,000 (2024: £624,000), of which £290,000
(2024: £307,000) was outstanding at the year end. Any investments in funds managed or advised by the Manager or any of its
associated companies, are excluded from the assets used for the purpose of the calculation and therefore incur no fee.
Under the terms of the Investment Management Agreement, the Manager may reclaim from the Company certain expenses paid by
the Manager on behalf of the Company to HSBC in connection with accounting and administrative services provided to the Company.
These charges amounted to £89,000 for the year ended 30 June 2025 (2024: £79,000), of which £40,000 (2024: £66,000) was
outstanding at the year end.
No director of the Company served as a director of any company within the Schroder Group at any time during the year, or prior period.
In accordance with the terms of a discretionary mandate between the Company, Better Society Capital Limited, Rathbone Investment
Management Limited and The Charity Bank Limited are entitled to receive a management fee for portfolio management services
relating to certain of the Company’s investments.
The fee payable to Rathbone in respect of the year ended 30 June 2025 amounted to £54,000 (2024: £54,000), of which £14,000 (2024:
£13,000) was outstanding at the year end. The fee payable to The Charity Bank Limited in respect of the year ended 30 June 2025
amounted to £2,000 (2024: £2,000), of which £nil was outstanding at the year end (2024: £nil).
19. Related party transactions
Details of the remuneration payable to directors are given in the Directors’ Remuneration Report on page 54 and details of Directors’
shareholdings are given in the Directors’ Remuneration Report on page 55. Details of transactions with the Managers are given in
note 18 above.
There have been no other transactions with related parties during the year (2024: there was a smaller related party transaction for the
purposes of the Listing Rules as then in force in relation to the debt investment in Community Energy Together Limited, The Company’s
debt investment in Community Energy Together Limited was valued at £3.5m and comprised 4.1% of the Company’s investment
portfolio as of 30 June 2024, was made by way of the sale of a £3.6m direct junior loan to Community Energy Together Limited,
previously owned by the Portfolio Manager. After the sale, the Portfolio Manager held a £2.4m investment in the same entity through a
junior loan, compared to £6.0m before the sale).
20. Disclosures regarding financial instruments measured at fair value
The Company’s nancial instruments within the scope of FRS 102 that are held at fair value comprise certain investments held in its
investment portfolio.
FRS 102 requires that nancial instruments held at fair value are categorised into a hierarchy consisting of the three levels below. A fair
value measurement is categorised in its entirety on the basis of the lowest level input that is signi cant to the fair value measurement.
Level 1 - valued using unadjusted quoted prices in active markets for identical assets.
Level 2 - valued using observable inputs other than quoted prices included within Level 1.
Level 3 - valued using inputs that are unobservable.
Details of the Company’s policy for valuing investments are given in note 1(b) on pages 67 to 68.
Level 3 investments have been valued in accordance with note 1(b)(ii) to (vii).
The Company’s unlisted investments held at fair value are valued using a variety of techniques consistent with the recommendations
set out in the International Private Equity and Venture Capital guidelines. Investments in third-party managed funds were valued by
reference to the most recent net asset value provided by the relevant manager. The valuation methods adopted by third-party
managers include using comparable company multiples, net asset values, assessment of comparable company performance and
assessment of milestone achievement at the investee. For certain investments, such as High Impact Housing, the third-party manager
may appoint external valuers to periodically value the underlying portfolio of assets. The valuations of third-party managed funds will
also be subject to an annual audit. The valuations of all investments are considered by the Portfolio Manager and recommended to the
AIFM, who in turn recommends them to the Company. Where it is deemed appropriate, the Portfolio Manager may recommend an
adjusted valuation to the extent that the adjusted valuation represents the Portfolio Manager’s view of fair value.
At 30 June, the Company’s xed asset investments held at fair value, were categorised as follows:
Section 3: Financial Statements
17. Uncalled capital commitments
At 30 June 2025, the Company had uncalled capital commitments amounting to £11,825,000 (2024: £12,174,000) in respect of follow-on
investments, which may be drawn down or called by investee entities, subject to standard notice periods.
18. Transactions with the Manager
Under the terms of the Alternative Investment Fund Manager Agreement, the Manager is entitled to receive a management fee. Details
of the basis of the calculation are given in the Directors’ Report on page 43.
The fee payable to the Manager in respect of the year ended 30 June 2025 amounted to £562,000 (2024: £624,000), of which £290,000
(2024: £307,000) was outstanding at the year end. Any investments in funds managed or advised by the Manager or any of its
associated companies, are excluded from the assets used for the purpose of the calculation and therefore incur no fee.
Under the terms of the Investment Management Agreement, the Manager may reclaim from the Company certain expenses paid by
the Manager on behalf of the Company to HSBC in connection with accounting and administrative services provided to the Company.
These charges amounted to £89,000 for the year ended 30 June 2025 (2024: £79,000), of which £40,000 (2024: £66,000) was
outstanding at the year end.
No director of the Company served as a director of any company within the Schroder Group at any time during the year, or prior period.
In accordance with the terms of a discretionary mandate between the Company, Better Society Capital Limited, Rathbone Investment
Management Limited and The Charity Bank Limited are entitled to receive a management fee for portfolio management services
relating to certain of the Company’s investments.
The fee payable to Rathbone in respect of the year ended 30 June 2025 amounted to £54,000 (2024: £54,000), of which £14,000 (2024:
£13,000) was outstanding at the year end. The fee payable to The Charity Bank Limited in respect of the year ended 30 June 2025
amounted to £2,000 (2024: £2,000), of which £nil was outstanding at the year end (2024: £nil).
19. Related party transactions
Details of the remuneration payable to directors are given in the Directors’ Remuneration Report on page 54 and details of Directors’
shareholdings are given in the Directors’ Remuneration Report on page 55. Details of transactions with the Managers are given in
note 18 above.
There have been no other transactions with related parties during the year (2024: there was a smaller related party transaction for the
purposes of the Listing Rules as then in force in relation to the debt investment in Community Energy Together Limited, The Company’s
debt investment in Community Energy Together Limited was valued at £3.5m and comprised 4.1% of the Company’s investment
portfolio as of 30 June 2024, was made by way of the sale of a £3.6m direct junior loan to Community Energy Together Limited,
previously owned by the Portfolio Manager. After the sale, the Portfolio Manager held a £2.4m investment in the same entity through a
junior loan, compared to £6.0m before the sale).
20. Disclosures regarding financial instruments measured at fair value
The Company’s nancial instruments within the scope of FRS 102 that are held at fair value comprise certain investments held in its
investment portfolio.
FRS 102 requires that nancial instruments held at fair value are categorised into a hierarchy consisting of the three levels below. A fair
value measurement is categorised in its entirety on the basis of the lowest level input that is signi cant to the fair value measurement.
Level 1 - valued using unadjusted quoted prices in active markets for identical assets.
Level 2 - valued using observable inputs other than quoted prices included within Level 1.
Level 3 - valued using inputs that are unobservable.
Details of the Company’s policy for valuing investments are given in note 1(b) on pages 67 to 68.
Level 3 investments have been valued in accordance with note 1(b)(ii) to (vii).
The Company’s unlisted investments held at fair value are valued using a variety of techniques consistent with the recommendations
set out in the International Private Equity and Venture Capital guidelines. Investments in third-party managed funds were valued by
reference to the most recent net asset value provided by the relevant manager. The valuation methods adopted by third-party
managers include using comparable company multiples, net asset values, assessment of comparable company performance and
assessment of milestone achievement at the investee. For certain investments, such as High Impact Housing, the third-party manager
may appoint external valuers to periodically value the underlying portfolio of assets. The valuations of third-party managed funds will
also be subject to an annual audit. The valuations of all investments are considered by the Portfolio Manager and recommended to the
AIFM, who in turn recommends them to the Company. Where it is deemed appropriate, the Portfolio Manager may recommend an
adjusted valuation to the extent that the adjusted valuation represents the Portfolio Manager’s view of fair value.
At 30 June, the Company’s xed asset investments held at fair value, were categorised as follows:
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
76
Section 3: Financial Statements
Restated
2025 2024
£’000 £’000
Level 1 3,123 5,928
Level 2 942 –
Level 3 47,716 52,853*
Total 51,781 58,781
*
For details of the prior period restatement, please refer to note 1(j).
There have been no transfers between Levels 1, 2 or 3 during the year (2024: nil).
Movements in fair value measurements included in Level 3 during the year are as follows: Restated
2025 2024
£’000 £’000
Opening book cost 48,567 49,908
Opening investment holding gains 4,286 4,949
Opening fair value of Level 3 investments 52,853 54,857
Purchases at cost 6,051 1,852*
Sales proceeds (9,047) (3,193)
Net losses on investments (2,141) (663)
Closing fair value of Level 3 investments 47,716 52,853
Closing book cost 45,571 48,567*
Closing investment holding gains 2,145 4,286
Closing fair value of Level 3 investments 47,716 52,853
*
For details of the prior period restatement, please refer to note 1(j).
21. Financial instruments’ exposure to risk and risk management policies
The Company’s objectives are set out on the inside front cover of this report. In pursuing these objectives, the Company is exposed to
a variety of nancial risks that could result in a reduction in the Company’s net assets or a reduction in the pro ts available for dividends.
These nancial risks include market risk (comprising interest rate risk and other price risk), liquidity risk and credit risk. The Directors’
policy for managing these risks is set out below. The Board coordinates the Company’s risk management policy. The Company has no
signi cant exposure to foreign exchange risk on monetary items.
The Company’s classes of nancial instruments may comprise the following:
• investments in collective funds, listed and unlisted bonds, debts, shares of quoted and unquoted companies which are held in
accordance with the Company’s investment objective;
• debtors, creditors, short-term deposit and cash arising directly from its operations;
• bank loans used for investment purposes; and
• derivatives used for e cient portfolio management or currency hedging.
(a) Market risk
The fair value or future cash ows of a nancial instrument held by the Company may uctuate because of changes in market prices.
This market risk comprises two elements: interest rate risk and other price risk. Information to enable an evaluation of the nature and
extent of these two elements of market risk is given in parts (i) and (ii) of this note, together with sensitivity analyses where appropriate.
The Board reviews and agrees policies for managing these risks.
The Manager assesses the exposure to market risk when making each investment decision and monitors the overall level of market risk
on the whole of the investment portfolio on an ongoing basis.
(i) Interest rate risk
Interest rate movements may a ect the level of income receivable on investments carrying a oating interest rate coupon, cash
balances and interest payable on any loans or overdrafts when interest rates are re-set.
Management of interest rate risk
Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may borrow from time to time,
but gearing will not exceed 20% of net asset value at the time of drawing. Gearing is de ned as borrowings less cash, expressed as
a percentage of net assets. The Company had an arranged overdraft facility to a limit of £5m with HSBC Bank plc. This expired on
30 November 2024. Due to the transition of the Depositary, Administration and Custody services of the Company from HSBC Bank plc
76
Section 3: Financial Statements
Restated
2025 2024
£’000 £’000
Level 1 3,123 5,928
Level 2 942 –
Level 3 47,716 52,853*
Total 51,781 58,781
*
For details of the prior period restatement, please refer to note 1(j).
There have been no transfers between Levels 1, 2 or 3 during the year (2024: nil).
Movements in fair value measurements included in Level 3 during the year are as follows: Restated
2025 2024
£’000 £’000
Opening book cost 48,567 49,908
Opening investment holding gains 4,286 4,949
Opening fair value of Level 3 investments 52,853 54,857
Purchases at cost 6,051 1,852*
Sales proceeds (9,047) (3,193)
Net losses on investments (2,141) (663)
Closing fair value of Level 3 investments 47,716 52,853
Closing book cost 45,571 48,567*
Closing investment holding gains 2,145 4,286
Closing fair value of Level 3 investments 47,716 52,853
*
For details of the prior period restatement, please refer to note 1(j).
21. Financial instruments’ exposure to risk and risk management policies
The Company’s objectives are set out on the inside front cover of this report. In pursuing these objectives, the Company is exposed to
a variety of nancial risks that could result in a reduction in the Company’s net assets or a reduction in the pro ts available for dividends.
These nancial risks include market risk (comprising interest rate risk and other price risk), liquidity risk and credit risk. The Directors’
policy for managing these risks is set out below. The Board coordinates the Company’s risk management policy. The Company has no
signi cant exposure to foreign exchange risk on monetary items.
The Company’s classes of nancial instruments may comprise the following:
• investments in collective funds, listed and unlisted bonds, debts, shares of quoted and unquoted companies which are held in
accordance with the Company’s investment objective;
• debtors, creditors, short-term deposit and cash arising directly from its operations;
• bank loans used for investment purposes; and
• derivatives used for e cient portfolio management or currency hedging.
(a) Market risk
The fair value or future cash ows of a nancial instrument held by the Company may uctuate because of changes in market prices.
This market risk comprises two elements: interest rate risk and other price risk. Information to enable an evaluation of the nature and
extent of these two elements of market risk is given in parts (i) and (ii) of this note, together with sensitivity analyses where appropriate.
The Board reviews and agrees policies for managing these risks.
The Manager assesses the exposure to market risk when making each investment decision and monitors the overall level of market risk
on the whole of the investment portfolio on an ongoing basis.
(i) Interest rate risk
Interest rate movements may a ect the level of income receivable on investments carrying a oating interest rate coupon, cash
balances and interest payable on any loans or overdrafts when interest rates are re-set.
Management of interest rate risk
Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may borrow from time to time,
but gearing will not exceed 20% of net asset value at the time of drawing. Gearing is de ned as borrowings less cash, expressed as
a percentage of net assets. The Company had an arranged overdraft facility to a limit of £5m with HSBC Bank plc. This expired on
30 November 2024. Due to the transition of the Depositary, Administration and Custody services of the Company from HSBC Bank plc
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
77
Section 3: Financial Statements
to J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A., London Branch e ective 30 September 2025, this overdraft facility was
not renegotiated.
The overdraft facility has not been utilised during the current or prior year.
Interest rate exposure
The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set,
is shown below:
2025 2024
Exposure to oating interest rates: £’000 £’000
Investments carrying a oating interest rate coupon 1,790 3,966
Current asset investments 9,009 3,106
Cash at bank and in hand 1,057 514
11,856 7,586
Sterling cash balances at call earn interest at oating rates based on the Sterling Overnight Interest Average rates (“SONIA”).
The above year end amounts are broadly representative of the exposure to interest rates during the year and prior year.
Interest rate sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 0.75% (2024: 0.75%) increase or
decrease in interest rates in regards to the Company’s monetary nancial assets and nancial liabilities. This level of change is
considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the
Company’s monetary nancial instruments held at the accounting date with all other variables held constant.
2025 2024
0.75% 0.75% 0.75% 0.75%
increase decrease increase decrease
in rate in rate in rate in rate
Income statement – return after taxation £’000 £’000 £’000 £’000
Revenue return 89 (89) 57 (57)
Capital return – – – –
Total return after taxation 89 (89) 57 (57)
Net Assets 89 (89) 57 (57)
(ii) Other price risk
Other price risk includes changes in market prices which may a ect the value of investments.
Management of other price risk
The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with
particular industry sectors. The portfolio management team has responsibility for monitoring the portfolio, which is selected in
accordance with the Company’s investment objective and seeks to ensure that individual stocks meet an acceptable risk/reward pro le.
The Board may authorise the Manager to enter derivative transactions for the purpose of currency hedging, although non-sterling
exposures are expected to be limited.
Market price risk exposure
The Company’s total exposure to changes in market prices at 30 June comprises the following:
Restated
2025 2024
£’000 £’000
Investments held at fair value through pro t or loss 51,781 58,781*
*
For details of the prior period restatement, please refer to note 1(j).
The above data is broadly representative of the exposure of the Company’s xed asset investments held at fair value to market price
risk during the year.
Concentration of exposure to market price risk
An analysis of the Company’s investments is given on page 22. This shows a concentration of exposure to the social housing sector in
the United Kingdom.
Section 3: Financial Statements
to J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A., London Branch e ective 30 September 2025, this overdraft facility was
not renegotiated.
The overdraft facility has not been utilised during the current or prior year.
Interest rate exposure
The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set,
is shown below:
2025 2024
Exposure to oating interest rates: £’000 £’000
Investments carrying a oating interest rate coupon 1,790 3,966
Current asset investments 9,009 3,106
Cash at bank and in hand 1,057 514
11,856 7,586
Sterling cash balances at call earn interest at oating rates based on the Sterling Overnight Interest Average rates (“SONIA”).
The above year end amounts are broadly representative of the exposure to interest rates during the year and prior year.
Interest rate sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 0.75% (2024: 0.75%) increase or
decrease in interest rates in regards to the Company’s monetary nancial assets and nancial liabilities. This level of change is
considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the
Company’s monetary nancial instruments held at the accounting date with all other variables held constant.
2025 2024
0.75% 0.75% 0.75% 0.75%
increase decrease increase decrease
in rate in rate in rate in rate
Income statement – return after taxation £’000 £’000 £’000 £’000
Revenue return 89 (89) 57 (57)
Capital return – – – –
Total return after taxation 89 (89) 57 (57)
Net Assets 89 (89) 57 (57)
(ii) Other price risk
Other price risk includes changes in market prices which may a ect the value of investments.
Management of other price risk
The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with
particular industry sectors. The portfolio management team has responsibility for monitoring the portfolio, which is selected in
accordance with the Company’s investment objective and seeks to ensure that individual stocks meet an acceptable risk/reward pro le.
The Board may authorise the Manager to enter derivative transactions for the purpose of currency hedging, although non-sterling
exposures are expected to be limited.
Market price risk exposure
The Company’s total exposure to changes in market prices at 30 June comprises the following:
Restated
2025 2024
£’000 £’000
Investments held at fair value through pro t or loss 51,781 58,781*
*
For details of the prior period restatement, please refer to note 1(j).
The above data is broadly representative of the exposure of the Company’s xed asset investments held at fair value to market price
risk during the year.
Concentration of exposure to market price risk
An analysis of the Company’s investments is given on page 22. This shows a concentration of exposure to the social housing sector in
the United Kingdom.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
78
Section 3: Financial Statements
Market price risk sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 10% in
the fair values of the Company’s xed asset investments. This level of change is considered to be a reasonable illustration based on
observation of current market conditions. The sensitivity analysis is based on the Company’s exposure to the underlying investments
and includes the impact on the management fee but assumes that all other variables are held constant.
Restated
2025 2024
10% 10% 10% 10%
increase decrease increase decrease
in fair in fair in fair in fair
value value value value
Income statement – return after taxation £’000 £’000 £’000 £’000
Revenue return (21) 21 (24)* 24*
Capital return 5,157 (5,157) 5,854* (5,854)*
Total return after taxation and net assets 5,136 (5,136) 5,830 (5,830)
Percentage change in net asset value (%) 6.2 (6.2) 6.7 (6.7)
*
For details of the prior period restatement, please refer to note 1(j).
(b) Liquidity risk
This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by
delivering cash or another nancial asset.
Management of the risk
The Portfolio Manager monitors the cash position to ensure su cient is available to meet the Company’s nancial obligations. For this
purpose, the Portfolio Manager may retain up to 20% of net assets in Liquid Assets, other liquid investments and a reserve of cash. The
Company also had an overdraft facility with HSBC Bank plc, which expired on 30 November 2024.
Liquidity risk exposure
Contractual maturities of nancial liabilities, based on the earliest date on which payment can be required are as follows:
2025 2024
Three Three
months months
or less or less
Creditors: amounts falling due within one year £’000 £’000
Other creditors and accruals (483) (576)
(483) (576)
(c) Credit risk
Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result
in loss to the Company.
Credit risk exposure
The Company is exposed to credit risk principally from debt securities held, o balance sheet commitments, loans and receivables and
cash deposits.
Portfolio dealing
The credit ratings of broker counterparties are monitored by the AIFM and limits are set on exposure to any one broker.
Exposure to the custodian
Throughout the nancial year ended 30 June 2025, the custodian of the Company’s assets was HSBC Bank plc which has long-term
Credit Ratings of AA– with Fitch and Aa3 with Moody’s.
Any assets held by the custodian will be held in accounts which are segregated from the custodian’s own trading assets. If the
custodian were to become insolvent, the Company’s right of ownership of those investments is clear and they are therefore protected.
However the Company’s cash balances are all deposited with the custodian as banker and held on the custodian’s balance sheet.
Accordingly, in accordance with usual banking practice, the Company will rank as a general creditor to the custodian in respect of cash
balances.
Exposure to debt securities
The Portfolio Manager’s investment process ensures that potential investments are subject to robust analysis, appropriate due
diligence and approval by an investment committee. Pre-investment checks are made to prevent breach of the Company's investment
limits, which are designed to ensure a diversi ed portfolio to manage risk. Debt securities are subject to continuous monitoring and
quarterly reports are presented to the Board.
78
Section 3: Financial Statements
Market price risk sensitivity
The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 10% in
the fair values of the Company’s xed asset investments. This level of change is considered to be a reasonable illustration based on
observation of current market conditions. The sensitivity analysis is based on the Company’s exposure to the underlying investments
and includes the impact on the management fee but assumes that all other variables are held constant.
Restated
2025 2024
10% 10% 10% 10%
increase decrease increase decrease
in fair in fair in fair in fair
value value value value
Income statement – return after taxation £’000 £’000 £’000 £’000
Revenue return (21) 21 (24)* 24*
Capital return 5,157 (5,157) 5,854* (5,854)*
Total return after taxation and net assets 5,136 (5,136) 5,830 (5,830)
Percentage change in net asset value (%) 6.2 (6.2) 6.7 (6.7)
*
For details of the prior period restatement, please refer to note 1(j).
(b) Liquidity risk
This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by
delivering cash or another nancial asset.
Management of the risk
The Portfolio Manager monitors the cash position to ensure su cient is available to meet the Company’s nancial obligations. For this
purpose, the Portfolio Manager may retain up to 20% of net assets in Liquid Assets, other liquid investments and a reserve of cash. The
Company also had an overdraft facility with HSBC Bank plc, which expired on 30 November 2024.
Liquidity risk exposure
Contractual maturities of nancial liabilities, based on the earliest date on which payment can be required are as follows:
2025 2024
Three Three
months months
or less or less
Creditors: amounts falling due within one year £’000 £’000
Other creditors and accruals (483) (576)
(483) (576)
(c) Credit risk
Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result
in loss to the Company.
Credit risk exposure
The Company is exposed to credit risk principally from debt securities held, o balance sheet commitments, loans and receivables and
cash deposits.
Portfolio dealing
The credit ratings of broker counterparties are monitored by the AIFM and limits are set on exposure to any one broker.
Exposure to the custodian
Throughout the nancial year ended 30 June 2025, the custodian of the Company’s assets was HSBC Bank plc which has long-term
Credit Ratings of AA– with Fitch and Aa3 with Moody’s.
Any assets held by the custodian will be held in accounts which are segregated from the custodian’s own trading assets. If the
custodian were to become insolvent, the Company’s right of ownership of those investments is clear and they are therefore protected.
However the Company’s cash balances are all deposited with the custodian as banker and held on the custodian’s balance sheet.
Accordingly, in accordance with usual banking practice, the Company will rank as a general creditor to the custodian in respect of cash
balances.
Exposure to debt securities
The Portfolio Manager’s investment process ensures that potential investments are subject to robust analysis, appropriate due
diligence and approval by an investment committee. Pre-investment checks are made to prevent breach of the Company's investment
limits, which are designed to ensure a diversi ed portfolio to manage risk. Debt securities are subject to continuous monitoring and
quarterly reports are presented to the Board.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
79
Section 3: Financial Statements
Credit risk exposure
The following amounts shown in the Balance Sheet, represent the maximum exposure to credit risk at the year end:
Restated
2025 2024
Balance Maximum Balance Maximum
sheet exposure sheet exposure
£’000 £’000 £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss 51,781 – 58,781* –*
Investments held at amortised cost (debt securities) 21,700 21,700 24,072* 24,072*
Current assets
Debtors 423 423 562 562
Current asset investments 9,009 9,009 3,106 3,106
Cash at bank and in hand 1,057 1,057 514 514
83,970 32,189 87,035 28,254
*
For details of the prior period restatement, please refer to note 1(j).
At 30 June 2025, the Company had an o -balance sheet credit exposure consisting of uncalled capital commitments which amounted
to £11,825,000 (2024: £12,174,000) in respect of follow-on investments.
(d) Fair values of nancial assets and nancial liabilities
All nancial assets and liabilities are either carried in the balance sheet at fair value, or the balance sheet amount is a reasonable
approximation of fair value.
22. Capital management policies and procedures
The Company’s capital management objectives are to ensure that it will be able to continue as a going concern, and to maximise the
income and capital return to its equity shareholders.
The Company’s capital structure comprises the following:
2025 2024
Equity £’000 £’000
Called-up share capital 853 853
Reserves 82,634 85,606
Total equity 83,487 86,459
The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis.
This review will include:
• the possible use of gearing, which will take into account the Manager’s views on the market;
• the potential bene t of repurchasing the Company’s own shares for cancellation or holding in treasury, which will take into account the
share price discount;
• the opportunity for issue of new shares; and
• the amount of dividend to be paid, in excess of that which is required to be distributed.
23. Events after the accounting date that have not been reflected in the financial statements
The Depositary, Administration and Custody services of the Company transitioned from HSBC Bank plc to J.P. Morgan Europe Limited
and JPMorgan Chase Bank, N.A., London Branch e ective 30 September 2025.
There have been no other events we are aware of since the balance sheet date which either require changes to be made to the gures
included in the nancial statements or to be disclosed by way of note.
Section 3: Financial Statements
Credit risk exposure
The following amounts shown in the Balance Sheet, represent the maximum exposure to credit risk at the year end:
Restated
2025 2024
Balance Maximum Balance Maximum
sheet exposure sheet exposure
£’000 £’000 £’000 £’000
Fixed assets
Investments held at fair value through pro t or loss 51,781 – 58,781* –*
Investments held at amortised cost (debt securities) 21,700 21,700 24,072* 24,072*
Current assets
Debtors 423 423 562 562
Current asset investments 9,009 9,009 3,106 3,106
Cash at bank and in hand 1,057 1,057 514 514
83,970 32,189 87,035 28,254
*
For details of the prior period restatement, please refer to note 1(j).
At 30 June 2025, the Company had an o -balance sheet credit exposure consisting of uncalled capital commitments which amounted
to £11,825,000 (2024: £12,174,000) in respect of follow-on investments.
(d) Fair values of nancial assets and nancial liabilities
All nancial assets and liabilities are either carried in the balance sheet at fair value, or the balance sheet amount is a reasonable
approximation of fair value.
22. Capital management policies and procedures
The Company’s capital management objectives are to ensure that it will be able to continue as a going concern, and to maximise the
income and capital return to its equity shareholders.
The Company’s capital structure comprises the following:
2025 2024
Equity £’000 £’000
Called-up share capital 853 853
Reserves 82,634 85,606
Total equity 83,487 86,459
The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis.
This review will include:
• the possible use of gearing, which will take into account the Manager’s views on the market;
• the potential bene t of repurchasing the Company’s own shares for cancellation or holding in treasury, which will take into account the
share price discount;
• the opportunity for issue of new shares; and
• the amount of dividend to be paid, in excess of that which is required to be distributed.
23. Events after the accounting date that have not been reflected in the financial statements
The Depositary, Administration and Custody services of the Company transitioned from HSBC Bank plc to J.P. Morgan Europe Limited
and JPMorgan Chase Bank, N.A., London Branch e ective 30 September 2025.
There have been no other events we are aware of since the balance sheet date which either require changes to be made to the gures
included in the nancial statements or to be disclosed by way of note.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
80
Section 4: Other Information (Unaudited)
80
Section 4: Other Information (Unaudited)
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
81
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 85
De nitions of Terms and Alternative Performance Measures 87
Impact Methodology Notes 89
Shareholder Information 92
Information about the Company 94
Section 4: Other Information (Unaudited)
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations 82
Notice of Annual General Meeting 83
Explanatory Notes to the Notice of Meeting 85
De nitions of Terms and Alternative Performance Measures 87
Impact Methodology Notes 89
Shareholder Information 92
Information about the Company 94
Section 4: Other Information (Unaudited)
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
82
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations
The AGM of the Company will be held on Wednesday,
17%December 2025 at 12.00 p.m. The formal Notice of Meeting is
set out on pages 83 to 84.
The following information is important and requires your
immediate attention. If you are in any doubt about the action you
should take, you should consult an independent nancial adviser,
authorised under the Financial Services and Markets Act 2000. If
you have sold or transferred all of your ordinary shares in the
Company, please forward this document with its accompanying
form of proxy at once to the purchaser or transferee, or to the
stockbroker, bank or other agent through whom the sale or
transfer was e ected, for onward transmission to the purchaser
or transferee.
Ordinary business
Resolutions 1 to 9 are all ordinary resolutions. Resolution 1 is
related to the Company’s Annual Report and Financial
Statements. Resolution 2 concerns the interim dividend as set out
on pages 43 to 44. Resolution 3 concerns the Directors’
Remuneration Report on pages 53 to 55.
Resolutions 4-7 invite shareholders to elect and re-elect directors
for a further year, following the recommendations of the
Nomination Committee, set out on page 52 (their biographies are
set out on pages 40 to 41).
Resolutions 8 and 9 concern the re-appointment and
remuneration of the Company’s Auditor, discussed in the Audit
and Risk Committee Report on pages 58 to 62.
Special business
Resolution 10 – Directors’ authority to allot shares
(ordinary resolution) and resolution 11 – power to
disapply pre-emption rights (special resolution)
The directors are seeking authority to allot a limited number of
unissued ordinary shares for cash without rst o ering them to
existing shareholders in accordance with statutory pre-emption
procedures.
Appropriate resolutions will be proposed at the forthcoming AGM
and are set out in full in the Notice of AGM. An ordinary resolution
will be proposed to authorise the directors to allot shares up to a
maximum aggregate nominal amount of £79,556 (being 10% of
the issued share capital (excluding any shares held in treasury) as
at 28%October 2025).
A special resolution will be proposed to authorise the directors to
allot shares up to a maximum aggregate nominal amount of
£79,556 (being 10% of the issued share capital as at 28 October
2025) on a%non pre-emptive basis. This authority includes shares
that the Company sells or transfers that have been held in
treasury. The directors do not intend to allot ordinary shares or
sell treasury shares, on a non pre-emptive basis, pursuant to this
authority other than to take advantage of opportunities in the
market as they arise and only if they believe it to be advantageous
to the Company as a whole. Shares issued or treasury shares
reissued, under this authority, will be at a%price that is equal to or
greater than the Company’s NAV per share, plus any applicable
costs, as at the latest practicable date before the allotment of
such shares.
If approved, both of these authorities will expire at the conclusion
of the AGM in 2026 unless renewed, varied or revoked earlier.
Resolution 12: authority to make market purchases
of the Company’s own shares (special resolution)
At the AGM held on 18 December 2024, the Company was
granted authority to make market purchases of up to 12,371,723
ordinary shares for cancellation or holding in treasury. 2,804,191
ordinary shares were bought back under this authority and the
Company therefore has remaining authority to purchase up to
9,567,532 ordinary shares. This authority will expire at the
forthcoming AGM.
The directors believe it is in the best interests of the Company and
its shareholders to have a general authority for the Company to
buy back its ordinary shares in the market as they keep under
review the share price discount to NAV. A special resolution will be
proposed at the forthcoming AGM to give the Company authority
to make market purchases of up to 14.99% of the ordinary shares
in issue as at 28%October 2025 (excluding treasury shares). The
directors will exercise this authority to buy back shares only when
the share price is at a discount to the Company’s NAV and only if
the directors consider that any purchase would be for the bene t
of the Company and its shareholders, taking into account relevant
factors and circumstances at the time. Any shares so purchased
would be cancelled or held in treasury for potential reissue.
If renewed, this authority will lapse at the conclusion of the AGM
in 2026 unless renewed, varied or revoked earlier.
Resolution 13: notice period for general meetings
(special resolution)
Resolution 13 set out in the Notice of AGM is a special resolution
and will, if passed, allow the Company to hold general meetings
(other than AGMs) on a minimum notice period of 14%clear days,
rather than 21 clear days as required by the Companies Act 2006.
The approval will be e ective until the Company’s next AGM to be
held in 2026. The directors will only call general meetings on
14%clear days’ notice when they consider it to be in the best
interests of the Company’s shareholders and will only do so if the
Company o ers facilities for all shareholders to vote by electronic
means and when the matter needs to be dealt with expediently.
Recommendations
The Board considers that the resolutions relating to the above
items of business are in the best interests of shareholders as
a%whole. Accordingly, the Board unanimously recommends to
shareholders that they vote in favour of the above resolutions and
the other resolutions to be proposed at the forthcoming AGM, as
they intend to do in respect of their own bene cial holdings.
82
Section 4: Other Information (Unaudited)
Annual General Meeting – Recommendations
The AGM of the Company will be held on Wednesday,
17%December 2025 at 12.00 p.m. The formal Notice of Meeting is
set out on pages 83 to 84.
The following information is important and requires your
immediate attention. If you are in any doubt about the action you
should take, you should consult an independent nancial adviser,
authorised under the Financial Services and Markets Act 2000. If
you have sold or transferred all of your ordinary shares in the
Company, please forward this document with its accompanying
form of proxy at once to the purchaser or transferee, or to the
stockbroker, bank or other agent through whom the sale or
transfer was e ected, for onward transmission to the purchaser
or transferee.
Ordinary business
Resolutions 1 to 9 are all ordinary resolutions. Resolution 1 is
related to the Company’s Annual Report and Financial
Statements. Resolution 2 concerns the interim dividend as set out
on pages 43 to 44. Resolution 3 concerns the Directors’
Remuneration Report on pages 53 to 55.
Resolutions 4-7 invite shareholders to elect and re-elect directors
for a further year, following the recommendations of the
Nomination Committee, set out on page 52 (their biographies are
set out on pages 40 to 41).
Resolutions 8 and 9 concern the re-appointment and
remuneration of the Company’s Auditor, discussed in the Audit
and Risk Committee Report on pages 58 to 62.
Special business
Resolution 10 – Directors’ authority to allot shares
(ordinary resolution) and resolution 11 – power to
disapply pre-emption rights (special resolution)
The directors are seeking authority to allot a limited number of
unissued ordinary shares for cash without rst o ering them to
existing shareholders in accordance with statutory pre-emption
procedures.
Appropriate resolutions will be proposed at the forthcoming AGM
and are set out in full in the Notice of AGM. An ordinary resolution
will be proposed to authorise the directors to allot shares up to a
maximum aggregate nominal amount of £79,556 (being 10% of
the issued share capital (excluding any shares held in treasury) as
at 28%October 2025).
A special resolution will be proposed to authorise the directors to
allot shares up to a maximum aggregate nominal amount of
£79,556 (being 10% of the issued share capital as at 28 October
2025) on a%non pre-emptive basis. This authority includes shares
that the Company sells or transfers that have been held in
treasury. The directors do not intend to allot ordinary shares or
sell treasury shares, on a non pre-emptive basis, pursuant to this
authority other than to take advantage of opportunities in the
market as they arise and only if they believe it to be advantageous
to the Company as a whole. Shares issued or treasury shares
reissued, under this authority, will be at a%price that is equal to or
greater than the Company’s NAV per share, plus any applicable
costs, as at the latest practicable date before the allotment of
such shares.
If approved, both of these authorities will expire at the conclusion
of the AGM in 2026 unless renewed, varied or revoked earlier.
Resolution 12: authority to make market purchases
of the Company’s own shares (special resolution)
At the AGM held on 18 December 2024, the Company was
granted authority to make market purchases of up to 12,371,723
ordinary shares for cancellation or holding in treasury. 2,804,191
ordinary shares were bought back under this authority and the
Company therefore has remaining authority to purchase up to
9,567,532 ordinary shares. This authority will expire at the
forthcoming AGM.
The directors believe it is in the best interests of the Company and
its shareholders to have a general authority for the Company to
buy back its ordinary shares in the market as they keep under
review the share price discount to NAV. A special resolution will be
proposed at the forthcoming AGM to give the Company authority
to make market purchases of up to 14.99% of the ordinary shares
in issue as at 28%October 2025 (excluding treasury shares). The
directors will exercise this authority to buy back shares only when
the share price is at a discount to the Company’s NAV and only if
the directors consider that any purchase would be for the bene t
of the Company and its shareholders, taking into account relevant
factors and circumstances at the time. Any shares so purchased
would be cancelled or held in treasury for potential reissue.
If renewed, this authority will lapse at the conclusion of the AGM
in 2026 unless renewed, varied or revoked earlier.
Resolution 13: notice period for general meetings
(special resolution)
Resolution 13 set out in the Notice of AGM is a special resolution
and will, if passed, allow the Company to hold general meetings
(other than AGMs) on a minimum notice period of 14%clear days,
rather than 21 clear days as required by the Companies Act 2006.
The approval will be e ective until the Company’s next AGM to be
held in 2026. The directors will only call general meetings on
14%clear days’ notice when they consider it to be in the best
interests of the Company’s shareholders and will only do so if the
Company o ers facilities for all shareholders to vote by electronic
means and when the matter needs to be dealt with expediently.
Recommendations
The Board considers that the resolutions relating to the above
items of business are in the best interests of shareholders as
a%whole. Accordingly, the Board unanimously recommends to
shareholders that they vote in favour of the above resolutions and
the other resolutions to be proposed at the forthcoming AGM, as
they intend to do in respect of their own bene cial holdings.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
83
Section 4: Other Information (Unaudited)
Notice of Annual General Meeting
Notice is hereby given that the AGM of Schroder BSC Social
Impact Trust plc will be held on Wednesday, 17 December
2025 at 12.00 p.m. at 1 London Wall Place, London EC2Y 5AU
to consider the following resolutions, of which resolutions 1
to 10 will be proposed as ordinary resolutions, and
resolutions 11 to 13 will be proposed as special resolutions:
Ordinary business
1. To receive the Annual Report and Financial Statements for the
year ended 30%June 2025.
2. To authorise the directors of the Company to declare and pay
all dividends of the Company as interim dividends and for the
last dividend referable to a nancial year not to be categorised
as a% nal dividend that is subject to shareholder approval.
3. To approve the Directors’ Remuneration Report for the year
ended 30 June 2025.
4. To approve the re-election of Susannah Nicklin as a director of
the Company.
5. To approve the re-election of James B. Broderick as a director of
the Company.
6. To approve the re-election of Alice Chapple as a director of the
Company.
7. To approve the re-election of Ranjan Ramparia as a director of
the Company.
8. To re-appoint BDO LLP as auditor to the Company.
9. To authorise the directors to determine the remuneration of
BDO LLP as auditor to the Company.
Special business
10. To consider, and if thought t, pass the following resolution as
an ordinary resolution:
“THAT in substitution for all existing authorities the directors be
generally and unconditionally authorised pursuant to
section%551 of the Companies Act 2006 (the “Act”) to exercise all
the powers of the Company to allot relevant securities (within
the meaning of section 551 of the Act) up to an aggregate
nominal amount of £79,556 (being 10% of the issued ordinary
share capital, excluding treasury shares, at 28 October 2025) for
a%period expiring (unless previously renewed, varied or revoked
by the Company in general meeting) at the conclusion of the
AGM of the Company in 2026, but that the Company may make
an o er or agreement which would or might require relevant
securities to be allotted after expiry of this authority and the
Board may allot relevant securities in pursuance of that o er or
agreement.”
11. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT, subject to the passing of Resolution 10 set out above,
the directors of the Company be and they are hereby
empowered pursuant to sections 570, 571 and 573 of the Act to
allot equity securities (within the meaning of section 560 of the
Act) for cash pursuant to the authority conferred by Resolution
10 or by way of sale of treasury shares as if section 561(1) of the
Act did not apply to any such allotment, provided that this
power shall be limited to the allotment of equity securities for
cash up to an aggregate nominal amount of £79,556
(representing 10% of the aggregate nominal amount of the
share capital, excluding treasury shares, in issue at 28 October
2025) at a%price of not less than the NAV per share and shall
expire upon the expiry of the general authority conferred by
Resolution 10 above, unless renewed at a general meeting prior
to such time, save that the Company may before such expiry
make o ers, agreements or arrangements which would or
might require equity securities to be allotted after such expiry
and so that the directors of the Company may allot equity
securities in pursuant of such o ers, agreements or
arrangements as if the power conferred hereby had not
expired.”
The directors do not intend to allot ordinary shares pursuant to
this power other than to enable the Company to continue its
issuance and premium management programme e ectively.
12. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT the Company be and is hereby generally and
unconditionally authorised in accordance with section 701 of
the Act to make market purchases (within the meaning of
section 693 of the Act) of ordinary shares of 1p each in the
capital of the Company at whatever discount the prevailing
market price represents to the prevailing NAV per share
provided that:
(a) the maximum number of share which may be purchased is
11,925,373, representing 14.99% of the Company’s issued
ordinary share capital as at 28 October 2025 (excluding
treasury shares);
(b) the maximum price (exclusive of expenses) which may be
paid for a share shall not exceed the higher of;
i) 105% of the average of the middle market quotations
for the share as taken from the London Stock Exchange
Daily O cial List for the ve business days preceding the
date of purchase; and
ii) the higher of the last independent bid and the highest
current independent bid on the London Stock Exchange;
(c) the minimum price (exclusive of expenses) which may be
paid for a share shall be 1p, being the nominal value per
Share;
(d) this authority hereby conferred shall expire at the
conclusion of the next AGM of the Company in 2026 (unless
previously renewed, varied or revoked by the Company prior
to such date);
(e) the Company may make a contract to purchase shares
under the authority hereby conferred which will or may be
executed wholly or partly after the expiration of such
authority and may make a purchase of shares pursuant to
any such contract; and
(f) any shares so purchased will be cancelled or held in
treasury.”
Section 4: Other Information (Unaudited)
Notice of Annual General Meeting
Notice is hereby given that the AGM of Schroder BSC Social
Impact Trust plc will be held on Wednesday, 17 December
2025 at 12.00 p.m. at 1 London Wall Place, London EC2Y 5AU
to consider the following resolutions, of which resolutions 1
to 10 will be proposed as ordinary resolutions, and
resolutions 11 to 13 will be proposed as special resolutions:
Ordinary business
1. To receive the Annual Report and Financial Statements for the
year ended 30%June 2025.
2. To authorise the directors of the Company to declare and pay
all dividends of the Company as interim dividends and for the
last dividend referable to a nancial year not to be categorised
as a% nal dividend that is subject to shareholder approval.
3. To approve the Directors’ Remuneration Report for the year
ended 30 June 2025.
4. To approve the re-election of Susannah Nicklin as a director of
the Company.
5. To approve the re-election of James B. Broderick as a director of
the Company.
6. To approve the re-election of Alice Chapple as a director of the
Company.
7. To approve the re-election of Ranjan Ramparia as a director of
the Company.
8. To re-appoint BDO LLP as auditor to the Company.
9. To authorise the directors to determine the remuneration of
BDO LLP as auditor to the Company.
Special business
10. To consider, and if thought t, pass the following resolution as
an ordinary resolution:
“THAT in substitution for all existing authorities the directors be
generally and unconditionally authorised pursuant to
section%551 of the Companies Act 2006 (the “Act”) to exercise all
the powers of the Company to allot relevant securities (within
the meaning of section 551 of the Act) up to an aggregate
nominal amount of £79,556 (being 10% of the issued ordinary
share capital, excluding treasury shares, at 28 October 2025) for
a%period expiring (unless previously renewed, varied or revoked
by the Company in general meeting) at the conclusion of the
AGM of the Company in 2026, but that the Company may make
an o er or agreement which would or might require relevant
securities to be allotted after expiry of this authority and the
Board may allot relevant securities in pursuance of that o er or
agreement.”
11. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT, subject to the passing of Resolution 10 set out above,
the directors of the Company be and they are hereby
empowered pursuant to sections 570, 571 and 573 of the Act to
allot equity securities (within the meaning of section 560 of the
Act) for cash pursuant to the authority conferred by Resolution
10 or by way of sale of treasury shares as if section 561(1) of the
Act did not apply to any such allotment, provided that this
power shall be limited to the allotment of equity securities for
cash up to an aggregate nominal amount of £79,556
(representing 10% of the aggregate nominal amount of the
share capital, excluding treasury shares, in issue at 28 October
2025) at a%price of not less than the NAV per share and shall
expire upon the expiry of the general authority conferred by
Resolution 10 above, unless renewed at a general meeting prior
to such time, save that the Company may before such expiry
make o ers, agreements or arrangements which would or
might require equity securities to be allotted after such expiry
and so that the directors of the Company may allot equity
securities in pursuant of such o ers, agreements or
arrangements as if the power conferred hereby had not
expired.”
The directors do not intend to allot ordinary shares pursuant to
this power other than to enable the Company to continue its
issuance and premium management programme e ectively.
12. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT the Company be and is hereby generally and
unconditionally authorised in accordance with section 701 of
the Act to make market purchases (within the meaning of
section 693 of the Act) of ordinary shares of 1p each in the
capital of the Company at whatever discount the prevailing
market price represents to the prevailing NAV per share
provided that:
(a) the maximum number of share which may be purchased is
11,925,373, representing 14.99% of the Company’s issued
ordinary share capital as at 28 October 2025 (excluding
treasury shares);
(b) the maximum price (exclusive of expenses) which may be
paid for a share shall not exceed the higher of;
i) 105% of the average of the middle market quotations
for the share as taken from the London Stock Exchange
Daily O cial List for the ve business days preceding the
date of purchase; and
ii) the higher of the last independent bid and the highest
current independent bid on the London Stock Exchange;
(c) the minimum price (exclusive of expenses) which may be
paid for a share shall be 1p, being the nominal value per
Share;
(d) this authority hereby conferred shall expire at the
conclusion of the next AGM of the Company in 2026 (unless
previously renewed, varied or revoked by the Company prior
to such date);
(e) the Company may make a contract to purchase shares
under the authority hereby conferred which will or may be
executed wholly or partly after the expiration of such
authority and may make a purchase of shares pursuant to
any such contract; and
(f) any shares so purchased will be cancelled or held in
treasury.”
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
84
Section 4: Other Information (Unaudited)
13. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT a general meeting, other than an annual general
meeting, may be called on not less than 14 clear days’ notice.”
By order of the Board
For and on behalf of
Schroder Investment Management Limited
28 October 2025
Registered O ce:
1 London Wall Place
London EC2Y 5AU
Registered Number: 12902443
84
Section 4: Other Information (Unaudited)
13. To consider and, if thought t, to pass the following resolution
as a special resolution:
“THAT a general meeting, other than an annual general
meeting, may be called on not less than 14 clear days’ notice.”
By order of the Board
For and on behalf of
Schroder Investment Management Limited
28 October 2025
Registered O ce:
1 London Wall Place
London EC2Y 5AU
Registered Number: 12902443
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
85
Section 4: Other Information (Unaudited)
Explanatory Notes to the Notice of Meeting
1. Ordinary shareholders are entitled to attend, ask questions and
vote at the meeting and to appoint one or more proxies, who
need not be a shareholder, as their proxy to exercise all or any
of%their rights to attend, speak and vote on their behalf at
the%meeting.
A proxy form is attached. Shareholders are encouraged to
appoint the Chair as proxy. If you wish to appoint a person
other than the Chair as your proxy, please insert the name of
your chosen proxy holder in the space provided at the top of
the form. If the proxy is being appointed in relation to less than
your full voting entitlement, please enter in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. If left blank your proxy
will be deemed to be authorised in respect of your full voting
entitlement (or if this proxy form has been issued in respect of
a%designated account for a shareholder, the full voting
entitlement for that designated account). Additional proxy
forms can be obtained by contacting the Company’s Registrars,
Equiniti Limited, on +44 (0)800 032 0641, or you may photocopy
the attached proxy form. Please indicate in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. Please also indicate by
ticking the box provided if the proxy instruction is one of
multiple instructions being given. Completion and return of
a%form of proxy will not preclude a member from attending the
AGM and voting in person.
On a vote by show of hands, every ordinary shareholder who is
present in person has one vote and every duly appointed proxy
who is present has one vote. On a poll vote, every ordinary
shareholder who is present in person or by way of a proxy has
one vote for every share of which he/she is a holder. Voting will
be by poll.
The “Vote Withheld” option on the proxy form is provided to
enable you to abstain on any particular resolution. However it
should be noted that a “Vote Withheld” is not a vote in law and
will not be counted in the calculation of the proportion of the
votes ‘For’ and ‘Against’ a resolution. A proxy form must be
signed and dated by the shareholder or his or her attorney duly
authorised in writing. In the case of joint holdings, any one
holder may sign this form. The vote of the senior joint holder
who tenders a vote, whether in person or by proxy, will be
accepted to the exclusion of the votes of the other joint holder
and for this purpose seniority will be determined by the order in
which the names appear on the Register of Members in respect
of the joint holding. To be valid, proxy form(s) must be
completed and returned to the Company’s Registrars, Equiniti
Limited, Aspect House, Spencer Road, Lancing, West Sussex
BN99 6DA, in the enclosed envelope together with any power of
attorney or other authority under which it is signed or a copy of
such authority certi ed notarially, to arrive no later than
48%hours before the time xed for the meeting, or an adjourned
meeting. You may also submit your proxy votes via the internet.
You can do so by visiting www.shareview.co.uk. You will need to
create an online portfolio using your Shareholder Reference
Number and follow the on-screen instructions. This information
can be found under your name on your form of proxy.
Alternatively, shareholders who have already registered with
Equiniti’s online portfolio service, Shareview, can appoint their
proxy electronically by logging on to their portfolio at
www.shareview.co.uk using their user ID and password. Once
logged in, click “view” on the “My Investments” page. Click on the
link to vote and follow the on screen instructions. Please note
that to be valid, your proxy instructions must be received by the
Company’s Registrar no later than 12.00 p.m. on Monday,
15%December 2025. If you have any di culties with online
voting, you should contact the shareholder helpline on
+44(0)800%032%0641. Please use the country code when calling
from outside the UK. Lines are open between 8.30 a.m. to
5.30%p.m., Monday to Friday excluding public holidays in England
and Wales.
If an ordinary shareholder submits more than one valid proxy
appointment, the appointment received last before the latest
time for receipt of proxies will take precedence. Shareholders
may not use any electronic address provided either in this
Notice of AGM or any related documents to communicate with
the Company for any purposes other than expressly stated.
Representatives of shareholders that are corporations will have
to produce evidence of their proper appointment when
attending the AGM.
2. Any person to whom this notice is sent who is a person
nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an
agreement between him or her and the shareholder by whom
he or she was nominated, have a right to be appointed (or to
have someone else appointed) as a proxy for the AGM. If a
Nominated Person has no such proxy appointment right or
does not wish to exercise it, he or she may, under any such
agreement, have a right to give instructions to the shareholder
as to the exercise of voting rights.
The statement of the rights of ordinary shareholders in relation
to the appointment of proxies in note 1 above does not apply to
Nominated Persons. The rights described in that note can only
be exercised by ordinary shareholders of the Company.
3. Pursuant to Regulation 41 of the Uncerti cated Securities
Regulations 2001, the Company has speci ed that only those
shareholders registered in the Register of members of the
Company at 6.30 p.m. on Monday, 15 December 2025, or
6.30%p.m. two%days prior to the date of an adjourned meeting,
shall be entitled to attend and vote at the meeting in respect of
the number of shares registered in their name at that time.
Changes to the Register of Members after 6.30 p.m. on
15%December 2025 shall be disregarded in determining the
right of any person to attend and vote at the meeting.
4. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service may
do so by using the procedures described in the CREST manual.
The CREST manual can be viewed at www.euroclear.com.
A%CREST message appointing a proxy (a “CREST proxy
instruction”) regardless of whether it constitutes the
appointment of a proxy or an amendment to the instruction
previously given to a previously appointed proxy must, in order
to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA19) by the latest time for receipt of proxy
appointments. If you are an institutional investor you may be
able to appoint a proxy electronically via the Proxymity platform,
a process which has been agreed by the Company and
approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must be
lodged by 12.00 p.m. on Monday, 15%December 2025 in order
to be considered valid. Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s associated
terms and conditions. It is important that you read these
carefully as you will be bound by them and they will govern the
electronic appointment of your proxy.
Section 4: Other Information (Unaudited)
Explanatory Notes to the Notice of Meeting
1. Ordinary shareholders are entitled to attend, ask questions and
vote at the meeting and to appoint one or more proxies, who
need not be a shareholder, as their proxy to exercise all or any
of%their rights to attend, speak and vote on their behalf at
the%meeting.
A proxy form is attached. Shareholders are encouraged to
appoint the Chair as proxy. If you wish to appoint a person
other than the Chair as your proxy, please insert the name of
your chosen proxy holder in the space provided at the top of
the form. If the proxy is being appointed in relation to less than
your full voting entitlement, please enter in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. If left blank your proxy
will be deemed to be authorised in respect of your full voting
entitlement (or if this proxy form has been issued in respect of
a%designated account for a shareholder, the full voting
entitlement for that designated account). Additional proxy
forms can be obtained by contacting the Company’s Registrars,
Equiniti Limited, on +44 (0)800 032 0641, or you may photocopy
the attached proxy form. Please indicate in the box next to the
proxy holder’s name the number of shares in relation to which
they are authorised to act as your proxy. Please also indicate by
ticking the box provided if the proxy instruction is one of
multiple instructions being given. Completion and return of
a%form of proxy will not preclude a member from attending the
AGM and voting in person.
On a vote by show of hands, every ordinary shareholder who is
present in person has one vote and every duly appointed proxy
who is present has one vote. On a poll vote, every ordinary
shareholder who is present in person or by way of a proxy has
one vote for every share of which he/she is a holder. Voting will
be by poll.
The “Vote Withheld” option on the proxy form is provided to
enable you to abstain on any particular resolution. However it
should be noted that a “Vote Withheld” is not a vote in law and
will not be counted in the calculation of the proportion of the
votes ‘For’ and ‘Against’ a resolution. A proxy form must be
signed and dated by the shareholder or his or her attorney duly
authorised in writing. In the case of joint holdings, any one
holder may sign this form. The vote of the senior joint holder
who tenders a vote, whether in person or by proxy, will be
accepted to the exclusion of the votes of the other joint holder
and for this purpose seniority will be determined by the order in
which the names appear on the Register of Members in respect
of the joint holding. To be valid, proxy form(s) must be
completed and returned to the Company’s Registrars, Equiniti
Limited, Aspect House, Spencer Road, Lancing, West Sussex
BN99 6DA, in the enclosed envelope together with any power of
attorney or other authority under which it is signed or a copy of
such authority certi ed notarially, to arrive no later than
48%hours before the time xed for the meeting, or an adjourned
meeting. You may also submit your proxy votes via the internet.
You can do so by visiting www.shareview.co.uk. You will need to
create an online portfolio using your Shareholder Reference
Number and follow the on-screen instructions. This information
can be found under your name on your form of proxy.
Alternatively, shareholders who have already registered with
Equiniti’s online portfolio service, Shareview, can appoint their
proxy electronically by logging on to their portfolio at
www.shareview.co.uk using their user ID and password. Once
logged in, click “view” on the “My Investments” page. Click on the
link to vote and follow the on screen instructions. Please note
that to be valid, your proxy instructions must be received by the
Company’s Registrar no later than 12.00 p.m. on Monday,
15%December 2025. If you have any di culties with online
voting, you should contact the shareholder helpline on
+44(0)800%032%0641. Please use the country code when calling
from outside the UK. Lines are open between 8.30 a.m. to
5.30%p.m., Monday to Friday excluding public holidays in England
and Wales.
If an ordinary shareholder submits more than one valid proxy
appointment, the appointment received last before the latest
time for receipt of proxies will take precedence. Shareholders
may not use any electronic address provided either in this
Notice of AGM or any related documents to communicate with
the Company for any purposes other than expressly stated.
Representatives of shareholders that are corporations will have
to produce evidence of their proper appointment when
attending the AGM.
2. Any person to whom this notice is sent who is a person
nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an
agreement between him or her and the shareholder by whom
he or she was nominated, have a right to be appointed (or to
have someone else appointed) as a proxy for the AGM. If a
Nominated Person has no such proxy appointment right or
does not wish to exercise it, he or she may, under any such
agreement, have a right to give instructions to the shareholder
as to the exercise of voting rights.
The statement of the rights of ordinary shareholders in relation
to the appointment of proxies in note 1 above does not apply to
Nominated Persons. The rights described in that note can only
be exercised by ordinary shareholders of the Company.
3. Pursuant to Regulation 41 of the Uncerti cated Securities
Regulations 2001, the Company has speci ed that only those
shareholders registered in the Register of members of the
Company at 6.30 p.m. on Monday, 15 December 2025, or
6.30%p.m. two%days prior to the date of an adjourned meeting,
shall be entitled to attend and vote at the meeting in respect of
the number of shares registered in their name at that time.
Changes to the Register of Members after 6.30 p.m. on
15%December 2025 shall be disregarded in determining the
right of any person to attend and vote at the meeting.
4. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service may
do so by using the procedures described in the CREST manual.
The CREST manual can be viewed at www.euroclear.com.
A%CREST message appointing a proxy (a “CREST proxy
instruction”) regardless of whether it constitutes the
appointment of a proxy or an amendment to the instruction
previously given to a previously appointed proxy must, in order
to be valid, be transmitted so as to be received by the issuer’s
agent (ID RA19) by the latest time for receipt of proxy
appointments. If you are an institutional investor you may be
able to appoint a proxy electronically via the Proxymity platform,
a process which has been agreed by the Company and
approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must be
lodged by 12.00 p.m. on Monday, 15%December 2025 in order
to be considered valid. Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s associated
terms and conditions. It is important that you read these
carefully as you will be bound by them and they will govern the
electronic appointment of your proxy.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
86
Section 4: Other Information (Unaudited)
5. Copies of the terms of appointment of the non-executive
directors and a statement of all transactions of each director
and of their family interests in the shares of the Company, will
be available for inspection by any member of the Company at
the registered o ce of the Company during normal business
hours on any weekday (English public holidays excepted) and
at%the Annual General Meeting by any attendee, for at least
15%minutes prior to, and during, the AGM. None of the directors
has a contract of service with the Company.
6. The biographies of the directors o ering themselves for
re-election are set out on pages 40 to 41 of the Company’s
Annual Report and Financial Statements for the year ended
30%June 2025.
7. As at 28 October 2025, 85,316,586 ordinary shares of 1 pence
each were in%issue (5,761,060 were held in treasury). Therefore
the total number of voting rights of the Company as at
28%October 2025 was 79,555,526.
8. A copy of this Notice of Meeting together with any other
information as%required under Section 311A of the Companies
Act 2006, is available from the Company’s website,
www.schroders.co.uk/sbsi.
9. Pursuant to Section 319A of the Companies Act 2006, the
Company must cause to be answered at the AGM any question
relating to the business being dealt with at%the AGM which is
put by a member attending the meeting, except in certain
circumstances, including if it is undesirable in the interests of
the Company or the good order of the meeting that the
question be answered or if to do so would involve the
disclosure of con dential information.
10. Members satisfying the thresholds in section 527 of the
Companies Act 2006 can require the Company to publish
a%statement on its website setting out any matter relating to:
(a) the audit of the Company’s Annual Report and Financial
Statements (including the auditor’s report and the
conduct of the audit) that are to be laid before the
Meeting; or
(b) any circumstance connected with an auditor of the
Company ceasing to hold o ce since the last AGM, that
the members propose to raise at the meeting. The
Company cannot require the members requesting the
publication to pay its expenses. Any statement placed on
the website must also be sent to the Company’s auditor
no later than the time it makes its statement available on
the website. The business which may be dealt with at the
meeting includes any statement that the Company has
been required to publish on its website.
11. The Company’s privacy policy is available on its website.
Shareholders can contact Equiniti for details of how Equiniti
processes their personal information as part of the AGM.
86
Section 4: Other Information (Unaudited)
5. Copies of the terms of appointment of the non-executive
directors and a statement of all transactions of each director
and of their family interests in the shares of the Company, will
be available for inspection by any member of the Company at
the registered o ce of the Company during normal business
hours on any weekday (English public holidays excepted) and
at%the Annual General Meeting by any attendee, for at least
15%minutes prior to, and during, the AGM. None of the directors
has a contract of service with the Company.
6. The biographies of the directors o ering themselves for
re-election are set out on pages 40 to 41 of the Company’s
Annual Report and Financial Statements for the year ended
30%June 2025.
7. As at 28 October 2025, 85,316,586 ordinary shares of 1 pence
each were in%issue (5,761,060 were held in treasury). Therefore
the total number of voting rights of the Company as at
28%October 2025 was 79,555,526.
8. A copy of this Notice of Meeting together with any other
information as%required under Section 311A of the Companies
Act 2006, is available from the Company’s website,
www.schroders.co.uk/sbsi.
9. Pursuant to Section 319A of the Companies Act 2006, the
Company must cause to be answered at the AGM any question
relating to the business being dealt with at%the AGM which is
put by a member attending the meeting, except in certain
circumstances, including if it is undesirable in the interests of
the Company or the good order of the meeting that the
question be answered or if to do so would involve the
disclosure of con dential information.
10. Members satisfying the thresholds in section 527 of the
Companies Act 2006 can require the Company to publish
a%statement on its website setting out any matter relating to:
(a) the audit of the Company’s Annual Report and Financial
Statements (including the auditor’s report and the
conduct of the audit) that are to be laid before the
Meeting; or
(b) any circumstance connected with an auditor of the
Company ceasing to hold o ce since the last AGM, that
the members propose to raise at the meeting. The
Company cannot require the members requesting the
publication to pay its expenses. Any statement placed on
the website must also be sent to the Company’s auditor
no later than the time it makes its statement available on
the website. The business which may be dealt with at the
meeting includes any statement that the Company has
been required to publish on its website.
11. The Company’s privacy policy is available on its website.
Shareholders can contact Equiniti for details of how Equiniti
processes their personal information as part of the AGM.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
87
Section 4: Other Information (Unaudited)
Definitions of Terms and Alternative Performance
Measures
Terms as defined in the Prospectus dated
23 November 2020
AIFM or Manager Schroder Unit Trusts Limited or Alternative
Investment Fund Manager
AIFM Directive the Directive on Alternative Investment
Fund Managers, 2011/61/EU
Co-Investments co-investments made by the Company
alongside Impact Funds or other impact
investors (which may include the Portfolio
Manager)
Direct Investments investments of the Company that are
neither interests in Impact Funds nor
Co-Investments
Eligible Social organisations such as community interest
Sector companies and community bene t
Organisations societies or other forms of organisation
where there is a mission and asset lock in
place
Impact Funds private market impact funds, however
structured, and other accounts managed
by third party asset managers
Liquidity Assets Assets that can easily be converted into
cash in a short amount of time
NAV or Net Assets the value of the assets of the Company
or Net Asset Value less its liabilities, determined in
accordance with the accounting principles
adopted by the Company from time to
time
NAV per Share or the NAV attributable to any class of Shares
Net Asset Value divided by the number of Shares of the
per Share relevant class in issue (other than any
Shares of the relevant class held in
treasury), and “NAV per Ordinary Share”
shall be construed accordingly
Portfolio Manager, Better Society Capital Limited
Better Society
Capital or BSC
Social Impact investments intended to have a positive
Investments social impact on people in the UK while
providing a nancial return to investors,
including, but not limited to, High Impact
Housing, Debt for Social Enterprises and
Social Outcomes Contracts, and with the
expectation that such investments will
predominantly be further invested in
Eligible Social Sector Organisations
SBSI Investment the investment committee of the Portfolio
Committee Manager established for the purpose of
approving Social Impact Investments to be
made by the Company
Schroders the AIFM‘s ultimate holding company and
its subsidiaries and a liates worldwide
The terms and performance measures below are those commonly used by investment companies to assess values,
investment performance and operating costs. Numerical calculations are given where relevant. Some of the
financial measures below are classified as APMs as defined by the European Securities and Markets Authority.
Under this definition, APMs include a financial measure of historical financial performance or financial position,
other than a financial measure defined or specified in the applicable financial reporting framework. APMs have
been marked with an asterisk.
NAV per share
The NAV per share of 102.94p (2024: 104.13p) represents the Net
Assets attributable to equity shareholders of £83,487,000 (2024:
£86,459,000) divided by the 81,102,939 (2024: 83,029,661) shares
in issue at the year end.
Total return*
The combined e ect of any dividends paid, together with the rise
or fall in the share price or NAV per share. Total return statistics
enable the investor to make performance comparisons between
investment companies with di erent dividend policies. Any
dividends received by a shareholder are assumed to have been
reinvested in either the assets of the Company at its NAV per
share at the time the shares were quoted ex-dividend (to calculate
the NAV per share total return) or in additional shares of the
Company (to calculate the share price total return).
The NAV total return for the year ended 30 June 2025 is calculated
as follows:
Opening NAV at 30/06/24 104.13p
Closing NAV at 30/06/25 102.94p
NAV on
Dividend received XD date XD date Factor
2.94p 14/11/24 104.66p 1.0281
NAV total return, being the closing NAV, multiplied
by the factor, expressed as a percentage change
in the opening NAV: 1.6%
Section 4: Other Information (Unaudited)
Definitions of Terms and Alternative Performance
Measures
Terms as defined in the Prospectus dated
23 November 2020
AIFM or Manager Schroder Unit Trusts Limited or Alternative
Investment Fund Manager
AIFM Directive the Directive on Alternative Investment
Fund Managers, 2011/61/EU
Co-Investments co-investments made by the Company
alongside Impact Funds or other impact
investors (which may include the Portfolio
Manager)
Direct Investments investments of the Company that are
neither interests in Impact Funds nor
Co-Investments
Eligible Social organisations such as community interest
Sector companies and community bene t
Organisations societies or other forms of organisation
where there is a mission and asset lock in
place
Impact Funds private market impact funds, however
structured, and other accounts managed
by third party asset managers
Liquidity Assets Assets that can easily be converted into
cash in a short amount of time
NAV or Net Assets the value of the assets of the Company
or Net Asset Value less its liabilities, determined in
accordance with the accounting principles
adopted by the Company from time to
time
NAV per Share or the NAV attributable to any class of Shares
Net Asset Value divided by the number of Shares of the
per Share relevant class in issue (other than any
Shares of the relevant class held in
treasury), and “NAV per Ordinary Share”
shall be construed accordingly
Portfolio Manager, Better Society Capital Limited
Better Society
Capital or BSC
Social Impact investments intended to have a positive
Investments social impact on people in the UK while
providing a nancial return to investors,
including, but not limited to, High Impact
Housing, Debt for Social Enterprises and
Social Outcomes Contracts, and with the
expectation that such investments will
predominantly be further invested in
Eligible Social Sector Organisations
SBSI Investment the investment committee of the Portfolio
Committee Manager established for the purpose of
approving Social Impact Investments to be
made by the Company
Schroders the AIFM‘s ultimate holding company and
its subsidiaries and a liates worldwide
The terms and performance measures below are those commonly used by investment companies to assess values,
investment performance and operating costs. Numerical calculations are given where relevant. Some of the
financial measures below are classified as APMs as defined by the European Securities and Markets Authority.
Under this definition, APMs include a financial measure of historical financial performance or financial position,
other than a financial measure defined or specified in the applicable financial reporting framework. APMs have
been marked with an asterisk.
NAV per share
The NAV per share of 102.94p (2024: 104.13p) represents the Net
Assets attributable to equity shareholders of £83,487,000 (2024:
£86,459,000) divided by the 81,102,939 (2024: 83,029,661) shares
in issue at the year end.
Total return*
The combined e ect of any dividends paid, together with the rise
or fall in the share price or NAV per share. Total return statistics
enable the investor to make performance comparisons between
investment companies with di erent dividend policies. Any
dividends received by a shareholder are assumed to have been
reinvested in either the assets of the Company at its NAV per
share at the time the shares were quoted ex-dividend (to calculate
the NAV per share total return) or in additional shares of the
Company (to calculate the share price total return).
The NAV total return for the year ended 30 June 2025 is calculated
as follows:
Opening NAV at 30/06/24 104.13p
Closing NAV at 30/06/25 102.94p
NAV on
Dividend received XD date XD date Factor
2.94p 14/11/24 104.66p 1.0281
NAV total return, being the closing NAV, multiplied
by the factor, expressed as a percentage change
in the opening NAV: 1.6%
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
88
Section 4: Other Information (Unaudited)
The NAV total return for the year ended 30 June 2024 is calculated
as follows:
Opening NAV at 30/06/23 104.90p
Closing NAV at 30/06/24 104.13p
NAV on
Dividend received XD date XD date Factor
2.30p 09/11/23 104.22p 1.0221
NAV total return, being the closing NAV, multiplied
by the factor, expressed as a percentage change
in the opening NAV: 1.5%
The share price total return for the year ended 30 June 2025 is
calculated as follows:
Opening share price at 30/06/24 86.75p
Closing share price at 30/06/25 77.50p
Share
price on
Dividend received XD date XD date Factor
2.94p 14/11/24 80.50p 1.0365
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: (7.4%)
The share price total return for the year ended 30 June 2024 is
calculated as follows:
Opening share price at 30/06/23 93.50p
Closing share price at 30/06/24 86.75p
Share
price on
Dividend received XD date XD date Factor
2.30p 09/11/23 90.00p 1.0256
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: (4.8%)
Discount/premium*
The amount by which the share price of an investment trust is
lower (discount) or higher (premium) than the NAV per share. The
discount or premium is expressed as a percentage of the NAV per
share. The discount at the year end amounted to 24.7% (2024:
16.7% discount), as the closing share price at 77.50p (2024:
86.75p) was 24.7% lower (2024: 16.7% lower) than the closing
NAV of 102.94p (2024: 104.13p).
Gearing/(net cash)*
The gearing percentage re ects the amount of borrowings (that
is, bank loans or overdrafts) that the Company has used to invest
in the market. This gure is indicative of the extra amount by
which shareholders’ funds would move if the Company’s
investments were to rise or fall. Gearing is de ned as: borrowings
used for investment purposes, less cash and cash equivalents and
money market funds, expressed as a percentage of Net Assets.
A%negative gure so calculated is termed a “net cash” position.
At the year end, the Company had no loans or overdrafts, and
thus was in a net cash position, calculated as follows:
2025 2024
£’000 £’000
Borrowings/(net cash) used for
investment purposes (10,066) (3,620)
Net assets 83,487 86,459
Net cash (%) (12.0) (4.2)
Ongoing Charges*
Ongoing Charges (“OGC”) is calculated in accordance with the
AIC’s recommended methodology and represents total
annualised operating expenses payable including any
management fee, but excluding any nance costs and transaction
costs, expressed as a%percentage of the average daily net asset
values during the year. The operating expenses calculated as
above amounted to £1,265,000 (2024: £1,177,000 ) for the year.
This amount, expressed as a percentage of the average net asset
values during the year of £84.2 million (2024: £86.5 million), gives
an OGC gure of 1.5% (2024: 1.36%).
Leverage*
For the purpose of the Alternative Investment Fund Managers
Directive, leverage is any method which increases the Company’s
exposure, including the borrowing of cash and the use of
derivatives. It is expressed as the ratio of the Company’s exposure
to its net asset value and is required to be calculated both on a
“Gross” and a “Commitment” method. Under the Gross method,
exposure represents the sum of the absolute values of all
positions, so as to give an indication of overall exposure. Under
the Commitment method, exposure is calculated in a similar way,
but after netting o hedges which satisfy certain strict criteria.
The leverage ratios and limits are presented on page 92 under
Shareholder Information.
*Alternative Performance Measure(s).
88
Section 4: Other Information (Unaudited)
The NAV total return for the year ended 30 June 2024 is calculated
as follows:
Opening NAV at 30/06/23 104.90p
Closing NAV at 30/06/24 104.13p
NAV on
Dividend received XD date XD date Factor
2.30p 09/11/23 104.22p 1.0221
NAV total return, being the closing NAV, multiplied
by the factor, expressed as a percentage change
in the opening NAV: 1.5%
The share price total return for the year ended 30 June 2025 is
calculated as follows:
Opening share price at 30/06/24 86.75p
Closing share price at 30/06/25 77.50p
Share
price on
Dividend received XD date XD date Factor
2.94p 14/11/24 80.50p 1.0365
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: (7.4%)
The share price total return for the year ended 30 June 2024 is
calculated as follows:
Opening share price at 30/06/23 93.50p
Closing share price at 30/06/24 86.75p
Share
price on
Dividend received XD date XD date Factor
2.30p 09/11/23 90.00p 1.0256
Share price total return, being the closing share price,
multiplied by the factor, expressed as a percentage
change in the opening share price: (4.8%)
Discount/premium*
The amount by which the share price of an investment trust is
lower (discount) or higher (premium) than the NAV per share. The
discount or premium is expressed as a percentage of the NAV per
share. The discount at the year end amounted to 24.7% (2024:
16.7% discount), as the closing share price at 77.50p (2024:
86.75p) was 24.7% lower (2024: 16.7% lower) than the closing
NAV of 102.94p (2024: 104.13p).
Gearing/(net cash)*
The gearing percentage re ects the amount of borrowings (that
is, bank loans or overdrafts) that the Company has used to invest
in the market. This gure is indicative of the extra amount by
which shareholders’ funds would move if the Company’s
investments were to rise or fall. Gearing is de ned as: borrowings
used for investment purposes, less cash and cash equivalents and
money market funds, expressed as a percentage of Net Assets.
A%negative gure so calculated is termed a “net cash” position.
At the year end, the Company had no loans or overdrafts, and
thus was in a net cash position, calculated as follows:
2025 2024
£’000 £’000
Borrowings/(net cash) used for
investment purposes (10,066) (3,620)
Net assets 83,487 86,459
Net cash (%) (12.0) (4.2)
Ongoing Charges*
Ongoing Charges (“OGC”) is calculated in accordance with the
AIC’s recommended methodology and represents total
annualised operating expenses payable including any
management fee, but excluding any nance costs and transaction
costs, expressed as a%percentage of the average daily net asset
values during the year. The operating expenses calculated as
above amounted to £1,265,000 (2024: £1,177,000 ) for the year.
This amount, expressed as a percentage of the average net asset
values during the year of £84.2 million (2024: £86.5 million), gives
an OGC gure of 1.5% (2024: 1.36%).
Leverage*
For the purpose of the Alternative Investment Fund Managers
Directive, leverage is any method which increases the Company’s
exposure, including the borrowing of cash and the use of
derivatives. It is expressed as the ratio of the Company’s exposure
to its net asset value and is required to be calculated both on a
“Gross” and a “Commitment” method. Under the Gross method,
exposure represents the sum of the absolute values of all
positions, so as to give an indication of overall exposure. Under
the Commitment method, exposure is calculated in a similar way,
but after netting o hedges which satisfy certain strict criteria.
The leverage ratios and limits are presented on page 92 under
Shareholder Information.
*Alternative Performance Measure(s).
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
89
Section 4: Other Information (Unaudited)
Impact Methodology Notes
Time period covered
Given that fund managers and intermediaries’ reporting timelines
di er, only impact data that was available before 29 April 2025
was included. In certain cases where fund managers had yet to
report 2024 data, we have used data from the prior year. The
report also draws on annual impact reports from frontline
investee organisations where available.
Usage of data
Collection of impact data is done through fund managers’ and
intermediaries’ annual impact reports and the Portfolio Manager’s
Impact Canvas. The Impact Canvas is the Company’s key tool to
measure performance of any fund it has invested in against that
fund’s impact thesis and the ve dimensions of impact. The
Impact Canvas forms part of the legal agreement with investees
and explicitly documents the investee’s impact thesis, as well as
setting formal expectations for impact measurement and
reporting. Fund managers and intermediaries share their annual
impact reports and/or Impact Canvas as part of their required
reporting on at least an annual basis. The data is collated centrally
by the Portfolio Manager’s Impact team and the team that
manages the Social Impact Trust. Impact datapoints associated
with fund managers are shared with them before publication of
the report for review and sign-o .
Case studies are sourced from fund managers’
reporting/websites or the Portfolio Manager’s previous reporting
and are also shared with fund managers for review and sign-o
prior to publication.
Data quality
Data quality in the report di ers depending on the asset class and
funds’ lives. For example, as noted in more detail in the sections
below, data quality for Social Outcomes Contracts tends to be
higher, given that these business models require quanti cation of
value generated for payment. On the other hand, investments in
Debt and Equity for Social Enterprises also include small-scale
social organisations that have limited capacity for measurement.
Frontline organisations
De ned as the organisations that receive capital from the funds
or intermediaries that the Social Impact Trust invests in. Frontline
organisations are the social enterprises, charities or housing
associations that directly deliver services and support to
communities in need. These organisations are at the forefront of
addressing social issues, such as homelessness, education,
healthcare and environmental sustainability, by implementing
practical solutions and engaging directly with the a ected
bene ciaries.
Number of bene ciaries or total people
bene ted/reached
To calculate this KPI, the Company aggregates (calculated using
measured data and/or estimates as judged appropriate) the
number of bene ciaries reached across the three asset classes
that it invests in:
• High Impact Housing: total number of people provided with
homes by housing initiatives nanced by the Company-
supported funds;
• Debt and Equity for Social Enterprises: total number of people
provided with services or products by organisations and
projects nanced by the Company-supported funds; and
• Social Outcomes Contracts: total number of people
provided%with services by partnerships nanced by the
Company-supported funds (currently only one fund in the
portfolio).
As a result, the total gures include:
• where the nance is targeted at a speci c project (e.g. full
nance for a frontline organisation to use for a speci c purpose
such as development of a new housing asset), the total number
of bene ciaries reached by the project since investment;
• where the nance is targeted towards an organisation’s
resilience and/or growth, the total number served by an
organisation since investment;
• both active and exited or repaid investments to demonstrate
the cumulative impact of the Social Impact Trust since its
launch; and
• cumulative gures for AgilityEco for number of households
served for 2021, 2022, 2023 (the years in which the Social
Impact Trust was invested in through BIGF).
The assumption is made that every household served by
AgilityEco is a new household due to the type of service o ered
(i.e. households generally need energy-e ciency services installed
only once). All other frontline investments assume a conservative
methodology that the only unique new customers are those
represented by an increase in number of bene ciaries reached
and no cumulative impact is analysed. Total bene ciaries reached
for AgilityEco are obtained applying a 2.4 household multiplier
(average size of household in the UK as per ONS Census 2021) to
the total number of households reached. Household gures for
2021 and 2022 have been obtained from BIGF’s report and for
2023 from AgilityEco’s impact report due to data availability.
Approach for the Social Impact Trust’s investment in
the Triodos Bank Bond
The £5.7m Triodos Bank Bond contributes to Triodos Bank’s
capitalisation, allowing the bank to increase its lending book to
UK%mission-led businesses by about eight times. Triodos Bank
reports to the Social Impact Trust on social impact for its entire
loan book, however the Social Impact Trust’s calculation for total
bene ciaries reached by the Bank Bond is based only on the
share of loans made possible by the Bond considering the
8x%multiplier e ect.
Proportionate share of total people bene ted
The Social Impact Trust reports a pro rata share of frontline
impact (bene ciaries) based on the Company’s investment as
a%percentage of total frontline project capital (for High Impact
Housing and Social Outcomes Contracts projects) or a frontline
organisation’s total debt and equity (for Debt and Equity for Social
Enterprises investments where full organisation impact is
reported). As with the total people bene ted gure explained
above, the Social Impact Trust reports cumulative impact to date.
This includes exited investments, such as AgilityEco, where data at
point of exit is taken. For exited investments, the associated Social
Impact Trust share of the frontline organisation from the annual
report prior to exit is used and no impact post exit is claimed.
Percentage of underserved and disadvantaged
people served
All Social Impact investments must demonstrate an ability to
reach people who are underserved (i.e. those who fall below
a%de ned threshold with regard to experiencing a particular,
important outcome) and from disadvantaged backgrounds
Section 4: Other Information (Unaudited)
Impact Methodology Notes
Time period covered
Given that fund managers and intermediaries’ reporting timelines
di er, only impact data that was available before 29 April 2025
was included. In certain cases where fund managers had yet to
report 2024 data, we have used data from the prior year. The
report also draws on annual impact reports from frontline
investee organisations where available.
Usage of data
Collection of impact data is done through fund managers’ and
intermediaries’ annual impact reports and the Portfolio Manager’s
Impact Canvas. The Impact Canvas is the Company’s key tool to
measure performance of any fund it has invested in against that
fund’s impact thesis and the ve dimensions of impact. The
Impact Canvas forms part of the legal agreement with investees
and explicitly documents the investee’s impact thesis, as well as
setting formal expectations for impact measurement and
reporting. Fund managers and intermediaries share their annual
impact reports and/or Impact Canvas as part of their required
reporting on at least an annual basis. The data is collated centrally
by the Portfolio Manager’s Impact team and the team that
manages the Social Impact Trust. Impact datapoints associated
with fund managers are shared with them before publication of
the report for review and sign-o .
Case studies are sourced from fund managers’
reporting/websites or the Portfolio Manager’s previous reporting
and are also shared with fund managers for review and sign-o
prior to publication.
Data quality
Data quality in the report di ers depending on the asset class and
funds’ lives. For example, as noted in more detail in the sections
below, data quality for Social Outcomes Contracts tends to be
higher, given that these business models require quanti cation of
value generated for payment. On the other hand, investments in
Debt and Equity for Social Enterprises also include small-scale
social organisations that have limited capacity for measurement.
Frontline organisations
De ned as the organisations that receive capital from the funds
or intermediaries that the Social Impact Trust invests in. Frontline
organisations are the social enterprises, charities or housing
associations that directly deliver services and support to
communities in need. These organisations are at the forefront of
addressing social issues, such as homelessness, education,
healthcare and environmental sustainability, by implementing
practical solutions and engaging directly with the a ected
bene ciaries.
Number of bene ciaries or total people
bene ted/reached
To calculate this KPI, the Company aggregates (calculated using
measured data and/or estimates as judged appropriate) the
number of bene ciaries reached across the three asset classes
that it invests in:
• High Impact Housing: total number of people provided with
homes by housing initiatives nanced by the Company-
supported funds;
• Debt and Equity for Social Enterprises: total number of people
provided with services or products by organisations and
projects nanced by the Company-supported funds; and
• Social Outcomes Contracts: total number of people
provided%with services by partnerships nanced by the
Company-supported funds (currently only one fund in the
portfolio).
As a result, the total gures include:
• where the nance is targeted at a speci c project (e.g. full
nance for a frontline organisation to use for a speci c purpose
such as development of a new housing asset), the total number
of bene ciaries reached by the project since investment;
• where the nance is targeted towards an organisation’s
resilience and/or growth, the total number served by an
organisation since investment;
• both active and exited or repaid investments to demonstrate
the cumulative impact of the Social Impact Trust since its
launch; and
• cumulative gures for AgilityEco for number of households
served for 2021, 2022, 2023 (the years in which the Social
Impact Trust was invested in through BIGF).
The assumption is made that every household served by
AgilityEco is a new household due to the type of service o ered
(i.e. households generally need energy-e ciency services installed
only once). All other frontline investments assume a conservative
methodology that the only unique new customers are those
represented by an increase in number of bene ciaries reached
and no cumulative impact is analysed. Total bene ciaries reached
for AgilityEco are obtained applying a 2.4 household multiplier
(average size of household in the UK as per ONS Census 2021) to
the total number of households reached. Household gures for
2021 and 2022 have been obtained from BIGF’s report and for
2023 from AgilityEco’s impact report due to data availability.
Approach for the Social Impact Trust’s investment in
the Triodos Bank Bond
The £5.7m Triodos Bank Bond contributes to Triodos Bank’s
capitalisation, allowing the bank to increase its lending book to
UK%mission-led businesses by about eight times. Triodos Bank
reports to the Social Impact Trust on social impact for its entire
loan book, however the Social Impact Trust’s calculation for total
bene ciaries reached by the Bank Bond is based only on the
share of loans made possible by the Bond considering the
8x%multiplier e ect.
Proportionate share of total people bene ted
The Social Impact Trust reports a pro rata share of frontline
impact (bene ciaries) based on the Company’s investment as
a%percentage of total frontline project capital (for High Impact
Housing and Social Outcomes Contracts projects) or a frontline
organisation’s total debt and equity (for Debt and Equity for Social
Enterprises investments where full organisation impact is
reported). As with the total people bene ted gure explained
above, the Social Impact Trust reports cumulative impact to date.
This includes exited investments, such as AgilityEco, where data at
point of exit is taken. For exited investments, the associated Social
Impact Trust share of the frontline organisation from the annual
report prior to exit is used and no impact post exit is claimed.
Percentage of underserved and disadvantaged
people served
All Social Impact investments must demonstrate an ability to
reach people who are underserved (i.e. those who fall below
a%de ned threshold with regard to experiencing a particular,
important outcome) and from disadvantaged backgrounds
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
90
Section 4: Other Information (Unaudited)
(de ned as one of the Approved Bene ciaries listed below or
people and communities experiencing a disadvantage in
achieving essential life outcomes, given existing socio-political
and economic systems around them). This is aggregated from
fund managers following the same methodology as the number
of people bene ted above.
Approved Bene ciaries
“Approved Bene ciaries” mean any person(s) who fall within one
or more of the following bene ciary groups:
a. people experiencing long-term unemployment;
b. homeless people;
c. people living in poverty and/or nancial exclusion;
d. people with addiction issues;
e. people with long-term health conditions/life-threatening or
terminal illness;
f. people with learning disabilities;
g. people with mental health needs;
h. people with physical disabilities or sensory impairments;
i. voluntary carers;
j. vulnerable parents;
k. vulnerable children (including looked-after children);
l. vulnerable young people and people not in employment,
education or training (NEETs);
m. older people (including people with dementia);
n. ex-o enders; and
o. people who have experienced crime or abuse;
with each group de ned in Good Finance’s Outcomes Matrix or as
otherwise de ned by the Portfolio Manager.
Number of homes provided and underserved and
disadvantaged people at risk of insecure tenure
and/or sub-standard housing
Calculated using the total number of people bene ted through
the methodology described above, and ltering out any
investments that do not provide homes. This includes
investments in both the High Impact Housing and Debt and
Equity for Social Enterprises asset classes.
The number di ers from the gures provided in the High Impact
Housing asset class section, as this section includes only the
number of homes provided and people housed in this asset class.
The total people housed by CBRE was restated to operational
homes instead of homes funded, as reported in previous years,
to%be consistent with how impact data is reported for other
housing funds in the portfolio. This led to a decrease of about
1,800 people. CBRE’s gure is calculated by the Portfolio Manager
and not a fund-reported gure.
Partner track record/age
The track record of frontline organisations is a high-level indicator
used to assess impact risk and experience of delivery of tackling
social issues across the Social Impact Trust’s portfolio. The
average track record for the portfolio is based on the average of
the age of all frontline organisations nanced through the Social
Impact Trust’s investments, taken from the date of organisation’s
formal registration to the current reporting period (where data is
available).
Impact theme and UN Sustainable Development
Goal (“SDG”) alignment
Each frontline investment is assessed for alignment against the
Company’s four key impact themes: Reducing poverty and
inequality; Good health and wellbeing; Education, training and
decent work; and Just transition to net zero.
All frontline investments are allocated a primary theme that is
most relevant to their business model and impact, and additional
themes where relevant (e.g. a housing fund supporting people at
risk of homelessness with integrated health and access to
employment services is primarily a Reducing poverty and
inequality investment, but is also tagged to Good health and
wellbeing, and Education, training and decent work).
All frontline investments are also assessed based on their
alignment to the SDGs. This coding is done on a primary,
secondary and tertiary basis, which aims to provide a view of the
top three SDGs each investment is supporting. However, many
investments will be targeting more than three SDGs and therefore
will not always capture the full range. Social organisations
frequently take a multi-tiered holistic approach to impact,
recognising multiple dimensions of exclusion or need for
disadvantaged and underserved groups. This combined approach
is a major driver for positive impact performance and reduced
nancial and impact risk. Combining housing (SDG 11) services
with education (SDG 4), care (SDG 3) and energy-e ciency
technology (SDGs 7 and 13) can drastically improve a tenant’s
nancial and personal wellbeing, reducing risks of defaults and
enhancing prospects of sustained positive outcomes.
Savings and income generated for Government,
households and communities
The Social Impact Trust invests in initiatives seeking to provide
bene ts to society in innovative and cost-e ective ways. This
report includes quanti cation of value generated for the portfolio
where we have high-quality data on the global cost of provision,
comparable data on existing alternative provision models as
counterfactuals, and high-quality data on medium to long-term
outcomes for bene ciaries and Government. This is primarily
applicable in investments that operate at comparatively large
scale, in well-established and data-rich sectors, and with business
models that require quanti cation of value generated for
payment.
Social outcomes contracts
Short-term value to Government is calculated using one of
three%methodologies:
• delivering against a public rate card: for projects delivering
against a public rate card, the value to Government is the price
of outcomes that Government was prepared to pay according
to the rate card - where this is higher than the amount actually
paid, this signi es that the project o ered a discount to the rate
card prices, or achieved more outcomes above the contract
cap, or both;
• short-term savings: for local projects targeting short-term
savings for a local authority, the value to Government is the
gross value of these savings during the tracking period (from
investment to the latest available report); and
• valued at cost: where there is no public outcomes rate card or
a%de nitive short-term saving created at the level of the
commissioning authority, no additional value has been
assigned to the outcomes over and above that which
Government has been willing to pay.
For more information on social outcomes contracts, please see
https://www.bridgesfundmanagement.com/outcomes-contracts/
90
Section 4: Other Information (Unaudited)
(de ned as one of the Approved Bene ciaries listed below or
people and communities experiencing a disadvantage in
achieving essential life outcomes, given existing socio-political
and economic systems around them). This is aggregated from
fund managers following the same methodology as the number
of people bene ted above.
Approved Bene ciaries
“Approved Bene ciaries” mean any person(s) who fall within one
or more of the following bene ciary groups:
a. people experiencing long-term unemployment;
b. homeless people;
c. people living in poverty and/or nancial exclusion;
d. people with addiction issues;
e. people with long-term health conditions/life-threatening or
terminal illness;
f. people with learning disabilities;
g. people with mental health needs;
h. people with physical disabilities or sensory impairments;
i. voluntary carers;
j. vulnerable parents;
k. vulnerable children (including looked-after children);
l. vulnerable young people and people not in employment,
education or training (NEETs);
m. older people (including people with dementia);
n. ex-o enders; and
o. people who have experienced crime or abuse;
with each group de ned in Good Finance’s Outcomes Matrix or as
otherwise de ned by the Portfolio Manager.
Number of homes provided and underserved and
disadvantaged people at risk of insecure tenure
and/or sub-standard housing
Calculated using the total number of people bene ted through
the methodology described above, and ltering out any
investments that do not provide homes. This includes
investments in both the High Impact Housing and Debt and
Equity for Social Enterprises asset classes.
The number di ers from the gures provided in the High Impact
Housing asset class section, as this section includes only the
number of homes provided and people housed in this asset class.
The total people housed by CBRE was restated to operational
homes instead of homes funded, as reported in previous years,
to%be consistent with how impact data is reported for other
housing funds in the portfolio. This led to a decrease of about
1,800 people. CBRE’s gure is calculated by the Portfolio Manager
and not a fund-reported gure.
Partner track record/age
The track record of frontline organisations is a high-level indicator
used to assess impact risk and experience of delivery of tackling
social issues across the Social Impact Trust’s portfolio. The
average track record for the portfolio is based on the average of
the age of all frontline organisations nanced through the Social
Impact Trust’s investments, taken from the date of organisation’s
formal registration to the current reporting period (where data is
available).
Impact theme and UN Sustainable Development
Goal (“SDG”) alignment
Each frontline investment is assessed for alignment against the
Company’s four key impact themes: Reducing poverty and
inequality; Good health and wellbeing; Education, training and
decent work; and Just transition to net zero.
All frontline investments are allocated a primary theme that is
most relevant to their business model and impact, and additional
themes where relevant (e.g. a housing fund supporting people at
risk of homelessness with integrated health and access to
employment services is primarily a Reducing poverty and
inequality investment, but is also tagged to Good health and
wellbeing, and Education, training and decent work).
All frontline investments are also assessed based on their
alignment to the SDGs. This coding is done on a primary,
secondary and tertiary basis, which aims to provide a view of the
top three SDGs each investment is supporting. However, many
investments will be targeting more than three SDGs and therefore
will not always capture the full range. Social organisations
frequently take a multi-tiered holistic approach to impact,
recognising multiple dimensions of exclusion or need for
disadvantaged and underserved groups. This combined approach
is a major driver for positive impact performance and reduced
nancial and impact risk. Combining housing (SDG 11) services
with education (SDG 4), care (SDG 3) and energy-e ciency
technology (SDGs 7 and 13) can drastically improve a tenant’s
nancial and personal wellbeing, reducing risks of defaults and
enhancing prospects of sustained positive outcomes.
Savings and income generated for Government,
households and communities
The Social Impact Trust invests in initiatives seeking to provide
bene ts to society in innovative and cost-e ective ways. This
report includes quanti cation of value generated for the portfolio
where we have high-quality data on the global cost of provision,
comparable data on existing alternative provision models as
counterfactuals, and high-quality data on medium to long-term
outcomes for bene ciaries and Government. This is primarily
applicable in investments that operate at comparatively large
scale, in well-established and data-rich sectors, and with business
models that require quanti cation of value generated for
payment.
Social outcomes contracts
Short-term value to Government is calculated using one of
three%methodologies:
• delivering against a public rate card: for projects delivering
against a public rate card, the value to Government is the price
of outcomes that Government was prepared to pay according
to the rate card - where this is higher than the amount actually
paid, this signi es that the project o ered a discount to the rate
card prices, or achieved more outcomes above the contract
cap, or both;
• short-term savings: for local projects targeting short-term
savings for a local authority, the value to Government is the
gross value of these savings during the tracking period (from
investment to the latest available report); and
• valued at cost: where there is no public outcomes rate card or
a%de nitive short-term saving created at the level of the
commissioning authority, no additional value has been
assigned to the outcomes over and above that which
Government has been willing to pay.
For more information on social outcomes contracts, please see
https://www.bridgesfundmanagement.com/outcomes-contracts/
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
91
Section 4: Other Information (Unaudited)
Debt and Equity for Social Enterprises
Calculated based on average annual savings generated through
reduction in energy bills as a result of energy-e ciency
improvements per household (AgilityEco). In addition, the total
gure for this asset class includes community bene t funds
generated by renewable energy assets (e.g. Community Energy
Together, Coigach).
The Social Impact Trust’s investments have generated £123m of
savings for underserved and disadvantaged people at risk of fuel
poverty. This is estimated using the energy bill savings per
household for AgilityEco clients receiving energy-e ciency
services and advice, including 50,142 households served in 2023
receiving one year of savings, 36,700 households served in 2022
receiving two years of savings, 45,600 households served in 2021
receiving three years of savings, to date. For more information,
please see AgilityEco’s annual impact report which is available at:
https://www.agilityeco.co.uk/about-us/our-impact/.
Investments also include small-scale social organisations that
have limited capacity for measurement, and a lack of consistent
measurement standards that makes comparison of costs and
bene ts challenging.
High Impact Housing
In 2023, assessment of public value was extended into the
Company’s housing portfolio, with support from Alma Economics.
This report includes data from this assessment for RLPF1. This
quanti es the nancial savings to local authorities associated with
reduced expenditure on transitional accommodation, public
sector savings to central Government related to avoided public
service costs of homelessness (e.g. healthcare, mental health,
interaction with the criminal justice system), and wellbeing
bene ts for tenants who experience signi cantly improved
accommodation compared to transitional accommodation and/or
rough sleeping. For a full description of the assessment
methodology please refer to the full report, which is available at:
https://almaeconomics.com/housing-and-homelessness/. The
£14m public savings referenced can be found in Table 2 Public
services (page%19 of the report) under row “RLPF1” and column
“Fund inception-Fund exit”. The £24m referenced is on Table 2
Wellbeing bene ts (page 20) under the same row and column.
The reference to “at least” under “Reducing Poverty and
Inequality” is included because the £14m gure does not consider
the savings assessments for other investments in the portfolio,
that o er transitional housing where similar savings are
generated but have not been quanti ed.
Greenhouse gas (“GHG”) emissions
To remain in line with the GHG Protocol, the GHG emissions
reported represent the proportional emissions of these
investments. Where possible, the investment-speci c method
under the GHG Protocol Category 15 guidance has been used.
As%such, relevant data was obtained from fund managers or from
publicly available information under Companies House. This
includes Scope 1, 2 & 3 data alongside nancial information such
as revenue and valuation. We have made every e ort to
understand the methodology used by fund managers. The data
ranges from PCAF score 1b to 3a depending on the calculation
undertaken by the fund manager.
Where it was not possible to obtain GHG emission data from fund
managers because it had not been calculated, emissions have
been estimated using available data. In most cases, the
average-data method was used, as per the GHG Protocol
Category%15 guidance. This method combines revenue data with
environmentally extended input-output carbon factors to
estimate a footprint.
All Scope 2 footprint calculations have been performed using the
location-based methodology to align with UK Streamlined Energy
and Carbon Reporting guidelines.
In all cases, the footprint disclosed excludes the impact of any
GHG o sets or carbon contributions.
Assets that are no longer held in the fund as of the reporting date
have been excluded from the analysis, primarily due to data
availability limitations.
EDI fund manager survey
See here for the EDI Fund Manager Survey methodology, which is
available at:
https://bsc.cdn.ngo/media/documents/EDI_Fund_Manager_Surve
y__Data_collection_and_methodology.pdf.
Section 4: Other Information (Unaudited)
Debt and Equity for Social Enterprises
Calculated based on average annual savings generated through
reduction in energy bills as a result of energy-e ciency
improvements per household (AgilityEco). In addition, the total
gure for this asset class includes community bene t funds
generated by renewable energy assets (e.g. Community Energy
Together, Coigach).
The Social Impact Trust’s investments have generated £123m of
savings for underserved and disadvantaged people at risk of fuel
poverty. This is estimated using the energy bill savings per
household for AgilityEco clients receiving energy-e ciency
services and advice, including 50,142 households served in 2023
receiving one year of savings, 36,700 households served in 2022
receiving two years of savings, 45,600 households served in 2021
receiving three years of savings, to date. For more information,
please see AgilityEco’s annual impact report which is available at:
https://www.agilityeco.co.uk/about-us/our-impact/.
Investments also include small-scale social organisations that
have limited capacity for measurement, and a lack of consistent
measurement standards that makes comparison of costs and
bene ts challenging.
High Impact Housing
In 2023, assessment of public value was extended into the
Company’s housing portfolio, with support from Alma Economics.
This report includes data from this assessment for RLPF1. This
quanti es the nancial savings to local authorities associated with
reduced expenditure on transitional accommodation, public
sector savings to central Government related to avoided public
service costs of homelessness (e.g. healthcare, mental health,
interaction with the criminal justice system), and wellbeing
bene ts for tenants who experience signi cantly improved
accommodation compared to transitional accommodation and/or
rough sleeping. For a full description of the assessment
methodology please refer to the full report, which is available at:
https://almaeconomics.com/housing-and-homelessness/. The
£14m public savings referenced can be found in Table 2 Public
services (page%19 of the report) under row “RLPF1” and column
“Fund inception-Fund exit”. The £24m referenced is on Table 2
Wellbeing bene ts (page 20) under the same row and column.
The reference to “at least” under “Reducing Poverty and
Inequality” is included because the £14m gure does not consider
the savings assessments for other investments in the portfolio,
that o er transitional housing where similar savings are
generated but have not been quanti ed.
Greenhouse gas (“GHG”) emissions
To remain in line with the GHG Protocol, the GHG emissions
reported represent the proportional emissions of these
investments. Where possible, the investment-speci c method
under the GHG Protocol Category 15 guidance has been used.
As%such, relevant data was obtained from fund managers or from
publicly available information under Companies House. This
includes Scope 1, 2 & 3 data alongside nancial information such
as revenue and valuation. We have made every e ort to
understand the methodology used by fund managers. The data
ranges from PCAF score 1b to 3a depending on the calculation
undertaken by the fund manager.
Where it was not possible to obtain GHG emission data from fund
managers because it had not been calculated, emissions have
been estimated using available data. In most cases, the
average-data method was used, as per the GHG Protocol
Category%15 guidance. This method combines revenue data with
environmentally extended input-output carbon factors to
estimate a footprint.
All Scope 2 footprint calculations have been performed using the
location-based methodology to align with UK Streamlined Energy
and Carbon Reporting guidelines.
In all cases, the footprint disclosed excludes the impact of any
GHG o sets or carbon contributions.
Assets that are no longer held in the fund as of the reporting date
have been excluded from the analysis, primarily due to data
availability limitations.
EDI fund manager survey
See here for the EDI Fund Manager Survey methodology, which is
available at:
https://bsc.cdn.ngo/media/documents/EDI_Fund_Manager_Surve
y__Data_collection_and_methodology.pdf.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
92
Section 4: Other Information (Unaudited)
Shareholder Information
Web pages and share price information
The Company has a dedicated website, which may be found at
www.schroders.com/sbsi. The website has been designed to be
used as the Company’s primary method of electronic
communication with shareholders. They contain details of the
Company’s share price and copies of annual report and other
documents published by the Company as well as information on
the directors, terms of reference of committees and other
governance arrangements. In addition, the website contain links to
announcements made by the Company to the market, Equiniti’s
shareview service and Schroders’ website. There is also a section
entitled “How to Invest”.
Share price information may also be found in the Financial Times
and at the Company’s website.
Association of Investment Companies
The Company is a member of the Association of Investment
Companies. Further information on the Association can be found
on its website, www.theaic.co.uk.
Individual Savings Account (“ISA”) status
The Company’s shares are eligible for stocks and shares ISAs.
Non-Mainstream Pooled Investments status
The Company currently conducts its a airs so that its shares can
be recommended by IFAs to ordinary retail investors in
accordance with the FCA’s rules in relation to non-mainstream
investment products and intends to continue to do so for the
foreseeable future. The Company’s shares are excluded from the
FCA’s restrictions which apply to non-mainstream investment
products because they are shares in an investment trust.
Financial calendar
Annual results announced October
AGM December
Half-year results announced March
Financial year end June
Alternative Investment Fund Managers
Directive (“AIFMD”) disclosures
The AIFMD UK regulation, transposed AIFMD into the FCA
Handbook in the UK and requires that certain pre-investment
information be made available to investors in Alternative
Investment Funds (such as the Company) and also that certain
regular and periodic disclosures are made. This information and
these disclosures may be found either below, elsewhere in this
annual report, or in the Company’s AIFMD information disclosure
document published on the Company’s web pages.
Leverage
The Company’s leverage policy and details of its leverage ratio
calculation and exposure limits as required by the AIFMD are
published on the Company’s web pages and within this report.
The Company is also required to periodically publish its actual
leverage exposures. As at 30 June 2025 these were:
Leverage exposure Maximum ratio Actual ratio
Gross method 150.0% 98.8%
Commitment method 150.0% 100.0%
Illiquid assets
As at the date of this report, none of the Company’s assets are
subject to special arrangements arising from their illiquid nature.
Remuneration disclosures
Quantitative remuneration disclosures to be made in this annual
report in accordance with FCA Handbook rule FUND3.3.5 may
also be found in the Company’s AIFMD information disclosure
document published on the Company’s website.
Publication of Key Information Document
(“KID”) by the AIFM
Pursuant to the Packaged Retail and Insurance-based Products
(“PRIIPs”) Regulation, the Manager, as the Company’s AIFM, is
required to publish a short KID on the Company. KIDs are
designed to provide certain prescribed information to retail
investors, including details of potential returns under di erent
performance scenarios and a risk/reward indicator. The
Company’s KID is available on its website.
Complaints
The Company has adopted a policy on complaints and other
shareholder communications which ensures that shareholder
complaints and communications addressed to the Company
Secretary, the Chair or the Board are, in each case, considered by
the Chair and the Board.
92
Section 4: Other Information (Unaudited)
Shareholder Information
Web pages and share price information
The Company has a dedicated website, which may be found at
www.schroders.com/sbsi. The website has been designed to be
used as the Company’s primary method of electronic
communication with shareholders. They contain details of the
Company’s share price and copies of annual report and other
documents published by the Company as well as information on
the directors, terms of reference of committees and other
governance arrangements. In addition, the website contain links to
announcements made by the Company to the market, Equiniti’s
shareview service and Schroders’ website. There is also a section
entitled “How to Invest”.
Share price information may also be found in the Financial Times
and at the Company’s website.
Association of Investment Companies
The Company is a member of the Association of Investment
Companies. Further information on the Association can be found
on its website, www.theaic.co.uk.
Individual Savings Account (“ISA”) status
The Company’s shares are eligible for stocks and shares ISAs.
Non-Mainstream Pooled Investments status
The Company currently conducts its a airs so that its shares can
be recommended by IFAs to ordinary retail investors in
accordance with the FCA’s rules in relation to non-mainstream
investment products and intends to continue to do so for the
foreseeable future. The Company’s shares are excluded from the
FCA’s restrictions which apply to non-mainstream investment
products because they are shares in an investment trust.
Financial calendar
Annual results announced October
AGM December
Half-year results announced March
Financial year end June
Alternative Investment Fund Managers
Directive (“AIFMD”) disclosures
The AIFMD UK regulation, transposed AIFMD into the FCA
Handbook in the UK and requires that certain pre-investment
information be made available to investors in Alternative
Investment Funds (such as the Company) and also that certain
regular and periodic disclosures are made. This information and
these disclosures may be found either below, elsewhere in this
annual report, or in the Company’s AIFMD information disclosure
document published on the Company’s web pages.
Leverage
The Company’s leverage policy and details of its leverage ratio
calculation and exposure limits as required by the AIFMD are
published on the Company’s web pages and within this report.
The Company is also required to periodically publish its actual
leverage exposures. As at 30 June 2025 these were:
Leverage exposure Maximum ratio Actual ratio
Gross method 150.0% 98.8%
Commitment method 150.0% 100.0%
Illiquid assets
As at the date of this report, none of the Company’s assets are
subject to special arrangements arising from their illiquid nature.
Remuneration disclosures
Quantitative remuneration disclosures to be made in this annual
report in accordance with FCA Handbook rule FUND3.3.5 may
also be found in the Company’s AIFMD information disclosure
document published on the Company’s website.
Publication of Key Information Document
(“KID”) by the AIFM
Pursuant to the Packaged Retail and Insurance-based Products
(“PRIIPs”) Regulation, the Manager, as the Company’s AIFM, is
required to publish a short KID on the Company. KIDs are
designed to provide certain prescribed information to retail
investors, including details of potential returns under di erent
performance scenarios and a risk/reward indicator. The
Company’s KID is available on its website.
Complaints
The Company has adopted a policy on complaints and other
shareholder communications which ensures that shareholder
complaints and communications addressed to the Company
Secretary, the Chair or the Board are, in each case, considered by
the Chair and the Board.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
93
Section 4: Other Information (Unaudited)
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access
to your funds than payment by cheque.
Applications for an electronic mandate can be made by contacting
the Registrar, Equiniti.
This is the most secure and e cient method of payment and
ensures that you receive any dividends promptly.
If you do not have a UK bank or building society account, please
contact Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk,
including how to register with Shareview Portfolio and manage
your shareholding online.
Section 4: Other Information (Unaudited)
Dividends
Paying dividends into a bank or building society account helps
reduce the risk of fraud and will provide you with quicker access
to your funds than payment by cheque.
Applications for an electronic mandate can be made by contacting
the Registrar, Equiniti.
This is the most secure and e cient method of payment and
ensures that you receive any dividends promptly.
If you do not have a UK bank or building society account, please
contact Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk,
including how to register with Shareview Portfolio and manage
your shareholding online.
Warning to shareholders
Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, o ering to sell them what
often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’.
These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice,
o ers to buy shares at a discount or o ers of free company reports.
If you receive any unsolicited investment advice:
Make sure you get the correct name of the person and organisation •
Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk •
Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam-unauthorised- rm •
Do not deal with any rm that you are unsure about •
If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation
Scheme.
The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at
fca.org.uk/consumers/unauthorised rmsindividualslist.
More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/
protect-yourself-scams.
www.schroders.com/sbsi
Directors
Susannah Nicklin (Chair)
James B. Broderick
Alice Chapple
Ranjan Ramparia
Registered o ce
1 London Wall Place
London EC2Y 5AU
Advisers and service providers
Alternative Investment Fund Manager (the “Manager”)
Schroder Unit Trusts Limited
1 London Wall Place
London EC2Y 5AU
Portfolio Manager
Better Society Capital Limited
44 Featherstone Street
London EC1Y 8RN
Company Secretary
Schroder Investment Management Limited
1 London Wall Place
London EC2Y 5AU
Telephone: 020 7658 6189
AMCompanySecretary@Schroders.com
Depositary and custodian
J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A.,
London Branch
25 Bank Street
Canary Wharf
London E14 5JP
Corporate broker
Winter ood Securities Limited
Riverbank House
2 Swan Lane
London EC4R 3GA
Independent auditor
BDO LLP
55 Baker Street
London W1U 7EU
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder Helpline: 0371 032 0641*
Website: www.shareview.co.uk
*Calls to this number are free of charge from UK landlines.
Communications with shareholders are mailed to the address
held on the register. Any noti cations and enquiries relating to
shareholdings, including a change of address or other
amendment should be directed to Equiniti Limited at the above
address and telephone number above.
Shareholder enquiries
General enquiries about the Company should be addressed
to%the Company Secretary at the address set out above.
Dealing Codes
ISIN: GB00BF781319
SEDOL: BF78131
Ticker: SBSI
Global Intermediary Identi cation Number (GIIN)
PXF89P.99999.SL.826
Legal Entity Identi er (LEI)
549300PG5MF2NY4ZRM86
Privacy notice
The Company’s privacy notice can be found on its web pages.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
94
Section 4: Other Information (Unaudited)
Information about the Company
Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning
investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, o ering to sell them what
often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’.
These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice,
o ers to buy shares at a discount or o ers of free company reports.
If you receive any unsolicited investment advice:
Make sure you get the correct name of the person and organisation •
Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk •
Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam-unauthorised- rm •
Do not deal with any rm that you are unsure about •
If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation
Scheme.
The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at
fca.org.uk/consumers/unauthorised rmsindividualslist.
More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/
protect-yourself-scams.
www.schroders.com/sbsi
Directors
Susannah Nicklin (Chair)
James B. Broderick
Alice Chapple
Ranjan Ramparia
Registered o ce
1 London Wall Place
London EC2Y 5AU
Advisers and service providers
Alternative Investment Fund Manager (the “Manager”)
Schroder Unit Trusts Limited
1 London Wall Place
London EC2Y 5AU
Portfolio Manager
Better Society Capital Limited
44 Featherstone Street
London EC1Y 8RN
Company Secretary
Schroder Investment Management Limited
1 London Wall Place
London EC2Y 5AU
Telephone: 020 7658 6189
AMCompanySecretary@Schroders.com
Depositary and custodian
J.P. Morgan Europe Limited and JPMorgan Chase Bank, N.A.,
London Branch
25 Bank Street
Canary Wharf
London E14 5JP
Corporate broker
Winter ood Securities Limited
Riverbank House
2 Swan Lane
London EC4R 3GA
Independent auditor
BDO LLP
55 Baker Street
London W1U 7EU
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder Helpline: 0371 032 0641*
Website: www.shareview.co.uk
*Calls to this number are free of charge from UK landlines.
Communications with shareholders are mailed to the address
held on the register. Any noti cations and enquiries relating to
shareholdings, including a change of address or other
amendment should be directed to Equiniti Limited at the above
address and telephone number above.
Shareholder enquiries
General enquiries about the Company should be addressed
to%the Company Secretary at the address set out above.
Dealing Codes
ISIN: GB00BF781319
SEDOL: BF78131
Ticker: SBSI
Global Intermediary Identi cation Number (GIIN)
PXF89P.99999.SL.826
Legal Entity Identi er (LEI)
549300PG5MF2NY4ZRM86
Privacy notice
The Company’s privacy notice can be found on its web pages.
Schroder BSC Social Impact Trust plc Annual Report and Financial Statements 2025
94
Section 4: Other Information (Unaudited)
Information about the Company
Schroder Investment Management Limited
1 London Wall Place, London EC2Y 5AU, United Kingdom
T +44 (0) 20 7658 6000
Important information: This document is intended to be for information purposes
only and it is not intended as promotional material in any respect. The material is not
intended as an offer or solicitation for the purchase or sale of any nancial
instrument. The material is not intended to provide, and should not be relied on for,
accounting, legal or tax advice, or investment recommendations. Information herein
is believed to be reliable but Schroders does not warrant its completeness or
accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance
should not be placed on the views and information in the document when taking
individual investment and/or strategic decisions. Past performance is not a reliable
indicator of future results, prices of shares and the income from them may fall as well
as rise and investors may not get back the amount originally invested. Schroders has
expressed its own views in this document and these may change. Issued by Schroder
Investment Management Limited, 1 London Wall Place, London EC2Y 5AU, which is
authorised and regulated by the Financial Conduct Authority. For your security,
communications may be taped or monitored.
@schroders
schroders.com
1 London Wall Place, London EC2Y 5AU, United Kingdom
T +44 (0) 20 7658 6000
Important information: This document is intended to be for information purposes
only and it is not intended as promotional material in any respect. The material is not
intended as an offer or solicitation for the purchase or sale of any nancial
instrument. The material is not intended to provide, and should not be relied on for,
accounting, legal or tax advice, or investment recommendations. Information herein
is believed to be reliable but Schroders does not warrant its completeness or
accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance
should not be placed on the views and information in the document when taking
individual investment and/or strategic decisions. Past performance is not a reliable
indicator of future results, prices of shares and the income from them may fall as well
as rise and investors may not get back the amount originally invested. Schroders has
expressed its own views in this document and these may change. Issued by Schroder
Investment Management Limited, 1 London Wall Place, London EC2Y 5AU, which is
authorised and regulated by the Financial Conduct Authority. For your security,
communications may be taped or monitored.
@schroders
schroders.com