Threadneedle and Big Issue Invest plan social bond fund

HomelessThreadneedle Investments and Big Issue Invest, the social investment arm of The Big Issue magazine for the homeless, are to launch the Threadneedle UK Social Bond Fund.

With £10 million (€7.4 million) of seed investment from Big Society Capital, a social investment bank, and £5 million from Threadneedle Investments, the fund is scheduled to launch in January next year.

Simon Bond, credit fund manager at Threadneedle Investments, will manage the fund.

Its stated aim is to achieve both an investment return and a positive social outcome by investing in fixed income securities of organisations that support socially beneficial activities and economic development.

Nigel Kershaw, chief executive of Big Issue Invest, says his team has developed a unique social assessment methodology, with input from the asset manager’s governance and responsible investment team.

The minimum investment will be £2,000 when accessed via UK platforms. It has an annual management charge of 0.3% for both retail and institutional investors, and there is no performance fee.

©2013 funds europe