SCHRODER BSC SOCIAL IMPACT TRUST PLC

Interim / Quarterly Report • Mar 31, 2022

Schroder BSC Social Impact Trust plc

Half Year Report and Accounts for the six months ended 31 December 2021

A unique investment opportunity to address UK social challenges

Investment objective

Impact Investments.

Investment policy

not limited to investments in:

enterprises.

on a fee for service basis.

categories set out above.

portfolio.

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, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social

The Company aims to provide a Net Asset Value total return of Consumer Prices Index ("CPI") plus 2 per cent. per annum (once the portfolio is fully invested and averaged over a rolling three- to fiveyear period, net of fees) with low correlation to traditional quoted markets while helping to address significant social issues in the UK.

The Company will invest in a diversified portfolio of private market Impact Funds and Co-Investments alongside such funds or other impact investors (including the Portfolio Manager), which in turn support charities and social enterprises, with a focus on the United Kingdom. The Company may also make Direct Investments. The Company will make Social Impact Investments that seek to deliver a positive social outcome together with a financial return, including but

• High Impact Housing – Including property funds that either acquire or develop high quality affordable housing, from more specialist housing for vulnerable groups (for example, transition accommodation for people who were formerly homeless or fleeing domestic violence) to housing for low income renters currently living in poor quality or insecure accommodation. • Debt for Social Enterprises – Including charity bonds, coinvestments in portfolios of secured loans and mezzanine debt funds with some equity that invest in established social

• 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

The market for Social Impact Investments in the United Kingdom is a rapidly evolving market and the Company retains the flexibility to invest in Social Impact Investments other than those in the three

The Company will typically obtain exposure to Social Impact Investments through investing in Impact Funds and Co-Investments. The Company will usually make investments on a commitment basis, expected to be called over a period 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 a cornerstone 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, benefitting 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

Impact Funds that invest in Debt for Social Enterprises assets may include some interests in both debt and equity interests. However, the Company will not normally have more than 10 per cent. of Net Assets, calculated at the time of commitment, exposed to equity

interests via mixed debt and equity Impact Funds. The portfolio composition at any one time will reflect the opportunities available to the Portfolio Manager, based on the performance, social impact and maturity of the Impact Funds,

Co-Investments and Direct Investments.

Contents

Key Performance Indicators	2
Chair's Statement	5
Portfolio Manager's Report	7
Portfolio Overview	11
Case Studies	12
Investment Portfolio	15
Half Year Report	16
Income Statement	17
Statement of Changes in Equity	18
Statement of Financial Position	19
Cash Flow Statement	20
Notes to the Accounts	21

Strategic Report

Governance Financial

Annual General Meeting

Key Performance Indicators

Total returns for the period1

1Total returns represent the combined effect 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 different dividend policies. Any dividends received by a shareholder are assumed to have been reinvested in either additional shares of the Company at the time the shares were quoted ex-dividend (to calculate the share price total return) or in the assets of the Company at its NAV per share (to calculate the NAV per share total return).

2Change relative to subscription price at IPO.

Financial Highlights

	31 December 2021	30 June 2021	% Change
Shareholders' funds (£'000)	89,294	78,227	14.1
Shares in issue	85,316,586	75,000,000	13.8
NAV per share (pence)	104.66	104.30	0.3
Share price (pence)	104.5	103.5	1.0
Share price premium/(discount) to NAV per share (%)	(0.2)	(0.8)
Net cash/(gearing)1	18.4	21.8

	6 months ended 31 December 2021	Period ended 30 June 2021
Net Revenue return after taxation (£'000)	380	435
Revenue return per share (pence)	0.49	0.58
Dividend per share (pence)2	–	0.57
Ongoing Charges (%)	1.06	1.09

1Borrowings used for investment purposes, less cash, expressed as a percentage of net assets. The Company currently has no borrowings, so this is shown as a net cash figure.

2Dividend is declared annually.

Impact highlights

Schroder BSC Social Impact Trust plc invests in social organisations benefiting vulnerable and disadvantaged people in areas of high need, including housing, health, social care and education and skills. All investments must demonstrate positive outcomes, aligned with the United Nations Sustainable Development Goals (SDGs).

The Company's full impact report will be published in Q2 2022.

£55m deployed, supporting more £60m deployed

than 100 social organisations Reaching more than 157,000 people Supporting more than 100 organisations reaching

Of which at least 90% from disadvantaged or vulnerable More than 157,000 people, of whom

backgrounds At least 90% from disadvantaged

or vulnerable backgrounds

Providing more than 10,000 More than 10,000 affordable

28 year average track record of social organisations and delivery partners

homes provided by investees

£36m in near term value as savings for government and households £36m in near term savings

generated by social organisations for government and households

Impact highlights

10%

Percentages adding to more than 100%, as some investees are aligned to several SDGs

16%

4%

54%

Rationale and Impact thesis

The Company was launched in 2020 to connect capital to organisations tackling some of the UK's most important social challenges.

These challenges have become even more severe in the last two years as a result of the Covid-19 pandemic.

Since the start of the pandemic, more than 180,000 have been tipped into homelessness3, while more than a quarter of UK children live in poverty.

1.5 million older people do not receive the care and support they need for essential activities5 .

to push more than a third of UK households into fuel poverty in 20227.

The investment required to address these problems is substantial.

Just tackling the shortage of housing for homeless people in the UK would require an estimated £12.8bn4 per year over the next decade.

An extra £7.7bn is needed annually to meet the growing demand for care6.

£65bn of investment is needed to insulate UK homes by 2035 to reduce fuel poverty and align with the UK's net zero carbon targets8.

Local social organisations are often best-placed to tackle these challenges, by partnering with government and investors to develop innovative, cost-effective solutions that are tailored to disadvantaged groups. These models are at a point where they require significant capital to scale their impact.

Schroder BSC Social Impact Trust plc provides investors access to these opportunities, by drawing on deep knowledge and networks, and a diversified listed investment structure. After years of social impact investing, Big Society Capital (BSC), the Delegated Portfolio Manager of the Company, have identified proven high-impact enterprise models that offer good riskadjusted returns, alongside low correlation to traditional quoted markets.

Impact as a driver of value

The investment selection process starts with the social issue, targeting sustainable models that can have a transformational impact on people's life chances.

Within each issue area, the Portfolio Manager looks for:

• fund managers that demonstrate good impact practice and an ability to structure investments to align financial and social value.
• enterprise models that can reach disadvantaged or vulnerable people, generating revenue by delivering significant positive impacts for people and savings for society and government.

This strategy means our financial performance is driven by achieving deep, scalable and sustained impact.

3Shelter

• 6House of Commons: Health and Social Care Committee
• 7Resolution Foundation 8Green Finance Institute

⁴National Housing Federation Submission: Budget 2020

⁵Age UK

Chair's Statement

I am pleased to present the first half year report of Schroder BSC Social Impact Trust plc ("the Company"), covering the period from 1 July to 31 December 2021.

We are publishing this report at a time of profound global geopolitical and economic instability. Just as the world was starting to

move out of a 2-year long pandemic, Russia's invasion of Ukraine sent ripples of uncertainty around the globe. The conflict adds upward pressure on already rising energy prices, and there are increased concerns regarding global food supply, which could lead to food price shocks affecting the United Kingdom. The expected increases in the cost of living and slower economic growth will disproportionately impact lower income groups, who have already been severely impacted by the global pandemic.

There are now over 80 million people displaced globally, with events in Ukraine causing this to rise further. The UK government and society will need to find compassionate and practical ways to respond.

This challenging context emphasises the importance of the Company's mission to invest in organisations that have a positive impact on the lives of vulnerable and disadvantaged people across the UK. The services of companies such as AgilityEco (in the Bridges Evergreen Holdings portfolio), which helps lift people out of fuel poverty, or the new Refugee Transitions Outcomes Fund mobilised by the Bridges Social Outcomes Fund II, are of critical importance at this time.

The need for capital to invest in proven models that address the challenges of vulnerable people while providing a sustainable return to investors is more pressing than ever.

The Company provides access to private market social impact investments delivering significant social impact alongside financial returns to investors. The Company also offers a degree of inflation protection and low correlation to traditional asset classes which is particularly relevant to investors looking to diversify their portfolios.

Financial performance

The Company has delivered strong shareholder returns since inception on 22 December 2020. NAV total return for the sixmonth period to 31st December 2021 was 0.9%, resulting in a NAV total return since inception of 7.0% (6.9% annualised). Overall, the Company's Net Asset Value per share rose from 104.3p to 104.7p following a dividend payment of 0.57p in the period.

In November 2021, the Company raised £10.8m through the issuance of 10.3m new shares through a secondary offering to a mix of new and existing shareholders. The proceeds of the equity issuance were fully committed by February 2022, ahead of target, to one new and two follow-on investments.

Once the portfolio is fully invested, we have a target NAV total return of Consumer Price Index ("CPI") plus 2%, averaged over a rolling three- to five- year period. The investments made in the period contribute to our strategy to deliver this financial return combined with high social impact.

A more detailed analysis of performance and more detail on the new investments are included in the Portfolio Manager's Report.

Chair's Statement

Social impact performance

As of 31 December 2021, the Company had committed £73m and deployed £60m, reaching 157,000 people, the majority of whom are from disadvantaged or vulnerable backgrounds. The Company's investments helped fund over 10,000 affordable homes through its investments in the high impact housing asset class and generated significant nearterm value as savings for government and households.

For a closer look at the front-line impact of the Company over the last period, the Portfolio Manager's Report includes a selection of case studies highlighting the positive social impact created by the Company's investments, showing how invested proceeds have made a difference across the three main asset classes of debt for social enterprise, high impact housing and social outcomes contracts. I am also delighted to mention that we plan to publish our first annual impact report in the second quarter of 2022. This will include further case studies to bring to life the transformative social impact facilitated by the Company's investments and offer deep and transparent analysis of our impact measurement and performance.

Premium/discount management

During the full calendar year 2021, the Company traded at an average premium to NAV of 1.5%, ending the period close to par at a discount of -0.2%.

As of the date of this report, the Company remains at a slight discount of -0.2%. The lack of volatility in the Company's share price is encouraging and compares favourably with the negative returns seen in many asset classes year to date.

The Company has shareholder authority to issue up to 10% of the issued share capital on a non-pre-emptive basis, and a proposal for authority to purchase up to 14.99% of the Company's issued share capital will be put forward at the Company's 2022 AGM.

Should the Company's shares reach a sufficient premium to NAV, the Board may seek to issue shares to new and existing investors.

Outlook

In a climate of continuing and growing instability, the Company's investment proposition, to deliver stable riskadjusted investor returns alongside significant social impact, remains as relevant as ever.

Chair's Statement

The long-term effects of the pandemic, along with the additional challenge of the geopolitical instability, have exacerbated the social challenges that the Company's investments have been set up to alleviate. Demand for the services offered by these social organisations has increased and we do not anticipate this to slow down. These organisations deliver essential government-mandated services and derive a substantial proportion of their revenues from government-backed sources, which have been historically stable through economic cycles. Some of these government contracts are also indexed to inflation, and the Company's portfolio includes some further inflation resilience through ownership of real assets such as housing and inflation-indexed leases.

The Board is confident that the Company's investment thesis of impact-driven value, together with strong execution by the Manager, will continue to provide an attractive combination of significant social impact, high quality risk-adjusted returns and low correlation to traditional quoted markets.

Your Company plays an important role in helping to expand capital to the social enterprises and other organisations across the UK that are purpose-built and focused on creating a fairer, inclusive and thriving society with sustainable financial models. In pursuit of this, we are keen to help educate retail and institutional investors about the dual returns of social investment and welcome your engagement with us.

Webinar/investor event

I would like to invite you to attend a webinar to be given by the Portfolio Manager on 31 March 2022 at 10.00 a.m., providing an opportunity to learn more about social impact investment, the Company's strategy and outlook, and to ask questions. Shareholders are encouraged to sign up using this link:

https://registration.duuzra.com/form/feedback/SBSIInterim2022

The webinar will also be available on the Company's webpages shortly after.

Susannah Nicklin Chair

30 March 2022

Portfolio Performance

The Net Asset Value (NAV) total return for the six-month period to 31 December 2021 was 0.9%. This resulted in a NAV total return since the 22 December 2020 IPO of 7.0%, or 6.9% annualised. Overall, the Company's NAV per share rose from 104.3p to 104.7p following a dividend payment of 0.57p in the period based on the earnings of the company in the year to 30 June 2021, as set out in the NAV bridge below.

Net Asset Value Bridge progression 1 July – 31 December 2021

As shown in the table below, portfolio returns to date have been driven by the performance of more seasoned investments in their mature phase. These investments are primarily from the seed portfolio originally purchased from Big Society Capital at IPO. Mature investments have contributed 8.16% to the NAV growth per share since launch. Assets still in their Investment phase are earlier in their life cycle and J-curves, and to date are producing returns in line with expectations.

	31st Dec 2021 % NAV committed	31st Dec 2021 % NAV invested	NAV total return contribution 6m to 31 Dec 2021	NAV total return contribution since launch
Mature	51%	48%	1.31%	8.16%
Investment phase	36%	19%	0.02%	-0.04%
Liquid Assets		15%	0.08%	0.07%
Equity issuance, cash, fees & expenses		18%	-0.51%	-1.15%
	87%	100%	0.90%	7.04%

Portfolio Manager's Report

The top three drivers of financial performance in the sixmonth period to 31 December 2021 were:

• The Charity Bond Portfolio contributed 0.72p to NAV per share growth from income and the tender at a premium of the Charities Aid Foundation (CAF) bond; in December 2021, CAF tendered its outstanding bonds maturing in 2026 at a premium to par; the Company participated in the tender, realising a gain on the investment, and reinvested the capital proceeds in CAF's bond maturing in 2031.
• The Real Lettings Property Fund contributed 0.38p to NAV per share growth from rental income and valuation gains in underlying properties.
• Bridges Evergreen Fund contributed 0.13p to NAV per share growth with contributions from strong operating performance from investments in AgillityEco and New Reflexions partially offset by below plan performance in the newer investment in Skills Training UK due to higher costs for the establishment of future study programmes.

The Social Impact performance of the portfolio is running ahead of plan in benefiting more disadvantaged groups across areas such as housing, education, fuel poverty and health and social care. The Company's investments are supporting over 100 social organisations benefiting over 157,000 people of whom over 90% are from vulnerable or disadvantaged backgrounds. We aim to work with organisations with deep experience in tackling social issues in the local context, as we believe this reduces risk. The average delivery track record of organisations in the portfolio is 28 years. These organisations have built strong relationships with local stakeholders, deep knowledge of the social issues they are addressing, and are trusted by their beneficiaries.

Social outcomes reported in the period include:

• Within the Resonance Homelessness Funds tenancy sustainment9 remained high at 100% within the crucial first six months, with 76% of tenants reporting an improvement in support network and relationships, and 46% of tenants in employment.
• Within the Bridges Evergreen portfolio an organisation that tackles fuel poverty, AgilityEco, is

reaching over 45,000 individuals generating over £200m worth of lifetime savings in energy bills.

– Within the Social Outcomes Funds 157 families have completed the Functional Family Therapy (FFT) intervention in Norfolk and Suffolk; young people from families that complete the intervention on average stay out of care 97% of the time.

We will be publishing a full review of the Company's social impact performance in our inaugural social impact report in Q2 2022.

Portfolio Cash Flows and Balance Sheet

In the period £10.1m was drawn down into existing investments – with the majority of that (£6.4m) going towards delivering new affordable homes in the High Impact Housing allocation. In Debt for Social Enterprises there have been further investments into the secured coinvestments with Charity Bank, mostly to Sue Ryder, delivering in Health and Social Care. Within Social Outcomes Contracts further investment was made into existing projects tackling children on the edge of care and homelessness, as well as a new investment aiming to deliver improvements on the challenges of refugee integration.

In November 2021, the company raised £10.8m through the issuance of 10.3m new shares through a secondary offering to a mix of new and existing shareholders.

Some of the Company's higher impact investments involve the staged deployment of capital over multiple years; we aim to mitigate any cash drag on returns through our Liquid ESG allocation. This is invested in assets with similar financial risk and return characteristics as the core asset allocation, though lower direct social impact given the lower availability of such assets in listed markets. Post the November share issuance, we have been targeting new Liquid ESG investments in areas with low interest rate duration and some inflation benefit, given our caution on fixed income duration in a rising inflation environment. Following the share issue, we made new investments in Greencoat UK Wind and Bluefield Solar, with an additional investment in to TwentyFour Sustainable Enhanced Income Asset Backed Securities (ABS) closing after the period end.

9All beneficiaries were able to remain in their homes, and no tenancies were prematurely terminated due to abandonment or eviction.

Portfolio Allocation (31 Dec 2021)

Recent Events

In February the Company announced the full commitment of the proceeds of our November fundraise ahead of target. We directed new investments into a combination of follow-ons, new private market funds and investments exclusively available through Big Society Capital's broader activities – such as co-investments and secondary purchases. In selecting the new investments, we balanced the faster deploying options in the Debt for Social Enterprises segment which reduce cash drag for the Company, with an increased allocation to High Impact Housing which offers more inflation-linkage. The new investment also broadens our geographical presence and provides exposure to new impact areas, such as community renewable energy.

We invested £4.5m in the secondary purchase of the SASC Community Investment Fund (CIF). CIF makes secured loans to local charities and social enterprises and has a track record since 2014 of delivering financial returns and impact. CIF holds a diversified portfolio of loans with exposure to community renewable energy, social and specialist supported housing, early years education and family support in the community. CIF's investments benefit more disadvantaged groups with a high proportion of revenue coming from government mandated sources.

We were able to secure a competitive discount from the foundation seller benefiting the Company's investors, while enabling the foundation to recycle the capital into new catalytic impact opportunities. We are targeting a 5% IRR on the investment, with the benefit of a mature fully deployed fund immediately contributing to returns.

We committed £5m into a follow-on investment in the Man GPM RI Community Housing Fund (MCHF) which supports those people who are underserved by the current housing rental and purchase market, with a focus on those earning the median income and below, including young families and key workers.

Portfolio Manager's Report

MCHF has a target of achieving 70% invested in affordable housing (tenures include social rent, affordable rent, key worker rent, and shared ownership). Across the seven projects in contract, 793 homes will be delivered with c.90% of those being an affordable tenure10. The fund is deploying capital faster than originally anticipated and early projects and pipeline demonstrate strong early alignment with its impact goals and fund IRR target of 8%.

In addition, we committed a further £1.6m into the Charity Bond Portfolio managed by Rathbones. These investments will be targeted towards organisations with established track records of delivering high social impact to disadvantaged groups with strong balance sheets and historically resilient revenue from government sources. The current portfolio has a gross income yield of 4.25%.

Following these investments the capital raised by the Company is fully committed, and 78% invested. Of the capital awaiting deployment, 19% of NAV is invested in yielding Liquid ESG assets with similar financial risk return characteristics to the high impact portfolio.

10Discounted rent (social, affordable or key worker) or discounted home ownership (shared ownership).

Portfolio allocation (24 Mar 2022)

Outlook

Since the period end, significant volatility has returned to financial markets with a combination of inflation fears, Russia's invasion of Ukraine and subsequent commodity price increases. This environment is creating significant cost of living challenges for many low-income groups in the UK. Many of the Company's investments in areas such as affordable housing and fuel poverty are directly tackling this challenge and are seeing significant additional demand. Across our activities we are seeing an increasing opportunity set where investment can be part of the solution in addressing social issues.

The underlying revenue sources of the portfolio are primarily from UK government backed sources (80% as of March 2022) and have been historically stable through economic cycles. We anticipate that stability will continue through the current

turbulence and fiscal pressures, supported by the savings government and society make with the impact of our investments.

We have closely followed the risks of higher inflation, with the asset allocation of the Company designed to be resilient through periods of rising prices. The portfolio includes assets such as index linked leases, the ownership of real assets such as housing and renewables, and social enterprises with government contracts that have historically moved with inflation and floating rate debt.

In this highly uncertain environment, the goals of the Company remain the same: to deliver for shareholders high quality returns with a low correlation to traditional quoted markets alongside significant social impact for more disadvantaged groups across the UK.

Portfolio Overview (31 December 2021)

Name	Asset type	Invested	Invested % of NAV	Exposure11	Exposure % of NAV	Investment focus	Example revenue sources	Example social outcomes
Charity Bank Co-Investment Facility	Debt for Social Enterprises	£4.6m	5.1%	£6.8m	7.6%	Senior secured loans to charities	NHS payments, trading income	Improved quality of life for long term conditions
Rathbones Charity Bonds Debt for Social	Enterprises	£15.0m	16.7%	£15.0m	16.7%	Bonds issued by charities	Gov't social care contracts	Physical and mental health
Bridges Evergreen Capital Debt for Social	Enterprises	£14.7m	16.4%	£14.8m	16.6%	Long-term capital for social enterprises	Gov't social care contracts	Access to quality care services
Triodos Bank UK Bond Issue	Debt for Social Enterprises	£2.5m	2.8%	£2.5m	2.8%	Private bond issued by Triodos bank	Trading income	Social housing, healthcare, education, renewable energy, arts & culture, and community projects
Resonance Real Lettings Property Fund	High Impact Housing	£6.1m	6.8%	£6.1m	6.8%	Leasing "move-on accommodation" to charities	Housing Benefit	Transition from homelessness to independent living
UK Affordable Housing Fund	High Impact Housing	£6.4m	7.1%	£9.8m	11.0%	Delivering sustainable and affordable housing in areas of need	Key worker rental payments	Increased supply of, and access to, affordable homes
Social and Sustainable Housing (SASH)	High Impact Housing	£4.0m	4.5%	£9.8m	11.0%	Housing for vulnerable people	payments	Supported Housing Housing for survivors of domestic abuse
Man Group Community Housing Fund	High Impact Housing	£3.2m	3.6%	£4.9m	5.5%	Delivering additional affordable housing	Housing Benefit	Increased supply of, and access to, affordable homes
Bridges Social Outcomes Fund	Social Outcomes £3.5m Contracts		3.9%	£8.1m	9.0%	Outcomes contracts across themes	Gov't outcome payments	Supporting children to remain with their

families

Liquid ESG investments

TwentyFour Sustainable Short Term Bond Income Fund	Liquid ESG	£3.6m	4.0%
EdenTree Responsible and Sustainable Sterling Bond Fund	Liquid ESG	£1.9m	2.2%
Rathbone Ethical Bond Fund	Liquid ESG	£2.1m	2.3%
Threadneedle UK Social Impact Bond	Liquid ESG	£3.1m	3.5%
Greencoat UK Wind	Liquid ESG	£2.1m	2.4%
Bluefield Solar Income Fund	Liquid ESG	£0.6m	0.7%

Invested % of NAV includes accrued interest.

¹¹ 31 December 2021 valuation plus undrawn commitment

Case studies

Debt for Social Enterprise: YMCA Dulverton Group (Triodos Bank UK)

Case studies

Challenge

The transition to adulthood is a crucial time for individuals' life chances. Difficulties can come from challenging living environments, family relationships and adversity in school/college. Without the necessary support in place young people can find themselves without a stable living situation and future learning and employment opportunities. This can lead to long-term unemployment and homelessness.

Investable Solution

Impact	The YMCA Dulverton Group covers an area ranging from North Somerset to Devon providing accommodation services for people at risk of homelessness and a variety of youth and community provisions, which offer support and advice as well as employment, health and wellbeing opportunities. The charity also runs 6 nurseries providing accessible, high-quality early years education.
Financial model	A secured loan from Triodos Bank enabled expansion into new accommodation and childcare facilities. Income is generated from trading activities and government-backed childcare and housing payments. Surpluses after debt service are put back into funding local community projects and initiatives.

Impact Management Project (IMP) 13 Impact Dimensions

¹² Source: Triodos Bank press release.

¹³ The Company uses the Impact Management Project framework to assess impact. For more information on the framework, please refer to the Impact Management Project website.

Case studies

High Impact Housing: Campbell Wharf (Man GPM RI Community Housing Fund)

Challenge

The housing market crisis is affecting people all over the UK. A lack of affordable housing is resulting in instability and unsuitable living conditions for many. It is estimated that the supply of completed affordable homes lags the demand by 100,000 homes per year. 14

Investable Solution

Impact	In Milton Keynes, Buckinghamshire, there has been poor rental affordability of good quality housing, with only one in three key workers able to afford a shared two-bed flat and none able to afford a one-bed flat. Campbell Wharf in Milton Keynes offers 79 affordable rent flats in a single block, targeted at key worker and median income households.
Financial model	The Man GPM RI Community Housing Fund aims to increase the supply of affordable housing in the UK. The Fund develops and leases new properties to Housing Associations and Local Authorities. The Campbell Wharf rental income is indexed to CPI, with the development set to benefit from grant funding from Homes England.

IMP Impact Dimensions:

14Source: Man GPM

Strategic Report

Case studies

Social Outcomes Contracts: Greater Manchester Better Outcomes Partnership (Bridges Social Outcomes Fund II)

Case studies

Challenge

Lack of secure accommodation early in life can have a severe negative impact on a young person's life chances and can lead to a cycle of homelessness including rough sleeping and deteriorating wellbeing for the young people affected.

Young adults accounted for around 50% of referrals into the emergency accommodation provision in Greater Manchester during 2020. Experience of these services can have a particularly detrimental effect on young people.

Greater Manchester set a specific goal to be a national leader in ending rough sleeping and reducing homelessness. Early intervention and preventative support are crucial to keeping young people out of homelessness.

Investable Solution

Impact

Greater Manchester Better Outcomes Partnership (GMBOP) works with young adults in the Greater Manchester area who are at risk of homelessness. Each individual has a dedicated Progression Coach, who works with the young person to stabilise their home situation or find alternative accommodation, while providing additional support around mental health. The Coach also helps the young people to build the support networks they need to engage in meaningful activity and move towards employment and training.

Financial model

Bridges partnered with the Greater Manchester Combined Authority (GMCA) to design and develop this project. The service is funded through the GMCA Reform Investment Fund with match funding from the Department for Digital, Culture, Media & Sport (DCMS) Life Chances Fund. GMBOP will receive outcomes payments from the GMCA and DCMS if the programme succeeds in delivering better outcomes for the young people.

IMP Impact Dimensions:

Investment Portfolio at 31 December 2021

	Nature of	Listed/	Country of	Industry	Carrying holders' value	Share funds
Holding	Interest	unlisted	incorporation	Sector	£'000	%
UK Affordable Housing Fund	Equity Shares	Unlisted	United Kingdom	Affordable and Social Housing	6,353	7.1
Resonance Real Lettings Property Fund LP	Limited Partnership Interest	Unlisted	United Kingdom	Affordable and Social Housing	6,095	6.8
Social and Sustainable Housing LP	Limited Partnership Interest	Unlisted	United Kingdom	Affordable and Social Housing	3,986	4.5
Man GPM RI Community Housing 1 LP	Limited Partnership Interest	Unlisted	United Kingdom	Affordable and Social Housing	3,216	3.6
High Impact Property					19,650	22.0
Bridges Evergreen Capital LP	Limited Partnership	Unlisted	United Kingdom	Profit-With-Purpose
Charity Bank Co-Invest Portfolio: Sue Ryder FRN 04/12/2043	Interest Fixed Income Security	Unlisted	United Kingdom	Organisations Charity (Medical)	14,651 2,551	16.4 2.9
Charity Bank Co-Invest Portfolio: Uxbridge United Welfare Trust	Fixed Income Security	Unlisted	United Kingdom	Charity (Community and Social Housing)	1,692	1.9
2.85% 20/12/2033 Charity Bank Co-Invest Portfolio: Abbeyfield Southdowns	Fixed Income Security	Unlisted	United Kingdom	Charity (Care Services)	332	0.4
3.35% 26/7/2044 Rathbones Bond Portfolio: Hightown Housing Association	Fixed Income Security	Listed	United Kingdom	Charity (Affordable and Social Housing)	2,483	2.8
4% 31/10/2029 Rathbones Bond Portfolio: Dolphin Square Charitable Foundation	Fixed Income Security	Listed	United Kingdom	Charity (Affordable and Social Housing)	2,450	2.7
4.25% 06/07/2028 Rathbones Bond Portfolio: Greensleeves Homes Trust	Fixed Income Security	Listed	United Kingdom	Charity (Care Services)	2,357	2.6
4.25% 30/03/2026 Rathbones Bond Portfolio:	Fixed Income Security	Listed	United Kingdom	Ethical Banking	2,223	2.5
RCB Bonds PLC 3.5% 08/12/2033 Rathbones Bond Portfolio:	Fixed Income Security	Unlisted	United Kingdom	Charity (Care Services)	1,650	1.8
Thera Trust 5.5% 31/03/2024 Rathbones Bond Portfolio:	Fixed Income Security	Listed	United Kingdom	Charity (Public Gardens)	1,500	1.7
Alnwick Garden Trust 5% 27/03/2030 Rathbones Bond Portfolio: Golden	Fixed Income Security	Listed	United Kingdom	Charity (Affordable	952	1.1
Lane Housing 3.9% 23/11/2029 Rathbones Bond Portfolio: B4RN (Broadband for Rural North Limited)	Fixed Income Security	Unlisted	United Kingdom	and Social Housing) Communications for Rural Communities	865	1.0
4.5% 30/04/2026 Rathbones Bond Portfolio: Coigach Community CIC	Fixed Income Security	Unlisted	United Kingdom	Renewable Energy	248	0.3
5.248% 31/03/2030 Triodos Bank UK Limited 2020 Bond 4% 23/12/2030	Fixed Income Security	Unlisted	United Kingdom	Ethical Banking	2,500	2.8
Debt for Social Enterprises					36,454	40.9
Bridges Social Outcomes Fund II LP	Limited Partnership Interest	Unlisted	United Kingdom	Social Outcomes Contracts	3,468	3.9
Social Outcomes Contracts					3,468	3.9
Vontobel Fund TwentyFour Sustainable Short Term Bond Fund	Equity Shares	Listed	Luxembourg	Diversified	3,605	4.0
Threadneedle UK Social Bond Fund	Equity Shares	Listed	United Kingdom	Diversified	3,145	3.5
Greencoat UK Wind Plc Fund	Equity Shares	Listed	United Kingdom	Diversified	2,106	2.4
Rathbone Ethical Bond Fund EdenTree Responsible and Sustainable	Equity Shares Equity Shares	Listed Listed	United Kingdom United Kingdom	Diversified Diversified	2,089 1,948	2.3 2.2
Sterling Bond Fund Bluefield Solar Income Fund	Equity Shares	Listed	Guernsey	Diversified	619	0.7
Liquid ESG Investments					13,512	15.1
Total investments1					73,084	81.9
Cash at bank and in hand Other net liabilities					16,451 (241)	18.4 (0.3)
Total shareholders's funds					89,294	100.0
1 Total investments comprise:
					£'000	%
Unquoted					47,607	65.1
Listed in the UK Listed on a recognised stock exchange overseas					21,253 4,224	29.1 5.8
Total					73,084	100.0

Strategic Report

Half Year Report

Principal Risks and Uncertainties

The Board has determined that the key risks for the Company are strategic risk, investment management risk, liquidity risk, valuation risk and cyber security risk . Additionally, the Board also discussed and monitored a number of risks that could potentially impact the Company's ability to meet its strategic objectives. These were political risk, climate change risk, COVID-19 related risks and the potential economic and policy effects of Russia's invasion of Ukraine, in particular higher inflation in the UK. The Board has determined they are not currently material for the Company. These risks are set out on pages 32 and 33 of the Report and Accounts for the year ended 30 June 2021.

Half Year Report

Except with respect to the degree of uncertainty relating to the economic effects of the conflict in Ukrain e , the Company's principal risk and uncertainties, and their mitigation, have not materially changed during the six months ended 31 December 2021 or since the Annual Report was published on 25 October 2021 .

Going concern

The Board has considered the Company's principal risks and uncertainties (including whether there are any emerging risks); has scrutinised the detailed cash flow forecas t; and considered their assessment of the likelihood and quantum of funds which could be raised from sales of investments. As a result, the Board is comfortable that the Company will have sufficient liquid funds to pay operating expenses.

On this basis, the Board considers it appropriate to adopt the going concern basis of accounting in preparing the Company's accounts.

Related party transactions

There have been no transactions with related parties that have materially affected the financial position or the performance of the Company during the six months ended 31 December 2021.

Directors' responsibility statement

The Directors confirm that, to the best of their knowledge, this set of condensed financial statements has been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, in particular with Financial Reporting Standard 104 "Interim Financial Reporting" and with the Statement of Recommended Practice, "Financial Statements of Investment Companies and Venture Capital Trusts" issued in April 2021 and that this Interim Management Report includes a fair review of the information required by 4.2.7 R and 4.2.8 R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Income Statement

	(Unaudited) For the six months ended 31 December 2021 Revenue Capital Total £'000 £'000 £'000			(Audited) For the period ended 30 June 20211 Revenue Capital Total £'000 £'000 £'000
Gains on investments held at fair value through profit or loss	–	583	583	–	4,200	4,200
Income from investments	676	–	676	775	–	775
Other interest receivable and similar income	19	–	19	5	–	5
Gross return	695	583	1,278	780	4,200	4,980
Investment management fee	(129)	(129)	(258)	(121)	(121)	(242)
Administrative expenses	(186)	–	(186)	(224)	–	(224)
Transaction costs	–	(13)	(13)	–	(30)	(30)
Net return before finance costs and taxation	380	441	821	435	4,049	4,484
Finance costs	–	–	–	–	–	–
Net return before taxation	380	441	821	435	4,049	4,484
Taxation (note 3)	–	–	–	–	–	–
Net return after taxation	380	441	821	435	4,049	4,484
Return per share (note 4)	0.49p	0.57p	1.06p	0.58p	5.40p	5.98p

1The Company began investment activities following its IPO on 22 December 2020. The comparative figures cover the period from the date of incorporation on 24 September 2020 to 30 June 2021.

The "Total" column of this statement is the profit 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 after taxation is also the total comprehensive income for the period.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

Financial

Statement of Changes in Equity

For the six months ended 31 December 2021 (unaudited)

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
At 30 June 2021	750	–	72,993	4,049	435	78,227
Issue of Ordinary Shares	103	10,621	–	–	–	10,724
Share issue costs	–	(50)	–	–	–	(50)
Dividend paid (note 5)	–	–	–	–	(428)	(428)
Net return after taxation	–	–	–	441	380	821
At 31 December 2021	853	10,571	72,993	4,490	387	89,294

For the period ended 30 June 2021 (audited)1

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total £'000
Issue of Management Shares	50	–	–	–	–	50
Redemption of Management Shares	(50)	–	–	–	–	(50)
Issue of Ordinary Shares	750	74,250	–	–	–	75,000
Share issue costs	–	(1,229)	(28)	–	–	(1,257)
Cancellation of share premium	–	(73,021)	73,021	–	–	–
Net return after taxation	–	–	–	4,049	435	4,484
At 30 June 2021	750	–	72,993	4,049	435	78,227

1The Company began investment activities following its IPO on 22 December 2020. The comparative figures cover the period from the date of incorporation on 24 September 2020 to 30 June 2021.

Statement of Financial Position at 31 December 2021

	(Unaudited) 31 December 2021 £'000	(Audited) 30 June 2021 £'000
Fixed assets
Investments held at fair value through profit or loss	51,281	41,369
Investments held at amortised cost	21,803	21,142
	73,084	62,511
Current assets
Debtors	324	221
Cash at bank and in hand	16,451	17,086
	16,775	17,307
Current liabilities
Creditors: amounts falling due within one year	(565)	(1,591)
Net current assets	16,210	15,716
Total assets less current liabilities	89,294	78,227
Net assets	89,294	78,227
Capital and reserves
Called-up share capital (note 6)	853	750
Share premium	10,571	–
Special reserve	72,993	72,993
Capital reserves	4,490	4,049
Revenue reserve	387	435
Total equity shareholders' funds	89,294	78,227
Net asset value per share (note 7)	104.66p	104.30p

Registered in England and Wales as a public company limited by shares.

Financial

Cash Flow Statement

	(Unaudited) For the six months ended 31 December 2021 £'000	(Audited) For the period ended 30 June 20211 £'000
Net cash inflow from operating activities	340	397
Investing activities
Purchases of investments	(13,883)	(57,245)
Sales of investments	2,662	191
Net cash outflow from investing activities	(11,221)	(57,054)
Net cash outflow before financing	(10,881)	(56,657)
Financing activities
Dividend paid	(428)	–
Issue of Management Shares	–	13
Redemption of Management Shares	–	(13)
Issue of Ordinary Shares	10,724	74,843
Share issue costs	(50)	(1,100)
Net cash inflow from financing activities	10,246	73,743
Net cash (outflow)/inflow in the period	(635)	17,086
Cash at bank and in hand at the beginning of the period	17,086	–
Net cash (outflow)/inflow in the period	(635)	17,086
Cash at bank and in hand at the end of the period	16,451	17,086

1The Company began investment activities following its IPO on 22 December 2020. The comparative figures cover the period from the date of incorporation on 24 September 2020 to 30 June 2021.

Notes to the Accounts

1. Financial Statements

The information contained within the accounts in this half year report has not been audited or reviewed by the Company's independent auditor.

The figures and financial information for the period ended 30 June 2021 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that period. Those accounts have been delivered to the Registrar of Companies and included the report of the auditor which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

The Company began investment activities following its IPO on 22 December 2020. The comparative figures cover the period from the date of incorporation on 24 September 2020 to 30 June 2021.

2. Accounting policies

Basis of accounting

The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, in particular with Financial Reporting Standard 104 "Interim Financial Reporting" and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the Association of Investment Companies in April 2021.

All of the Company's operations are of a continuing nature.

The accounting policies applied to these accounts are consistent with those applied in the accounts for the period ended 30 June 2021.

3. Taxation

The Company's effective corporation tax rate is nil, as deductible expenses exceed taxable income. The Company intends to continue meeting the conditions required to retain its status as an Investment Trust Company, and therefore no provision has been made for deferred tax on any capital gains or losses arising on the revaluation or disposal of investments.

4. Return per share

	(Unaudited) For the six months ended 31 December 2021 £'000	(Audited) For the period ended 30 June 2021 £'000
Revenue return	380	435
Capital return	441	4,049
Total return	821	4,484
Weighted average number of shares in issue during the period	77,523,078	75,000,000
Revenue return per share	0.49p	0.58p
Capital return per share	0.57p	5.40p
Total return per share	1.06p	5.98p

Financial

Notes to the Accounts

5. Dividend paid

	(Unaudited)	(Audited)
	For the	For the
	six months	period
	ended	ended
	31 December	30 June
	2021	2021
	£'000	£'000
Final dividend of 0.57p per share paid in respect of the period ended 30 June 2021	428	–

No dividend has been declared in respect of the six months ended 31 December 2021.

6. Called-up share capital

Changes in called-up share capital during the period were as follows:

	(Unaudited) For the six months ended 31 December 2021 £'000	(Audited) For the period ended 30 June 2021 £'000
Opening balance of 75,000,000 (period ended 30 June 2021: nil) Ordinary
Shares of 1p each	750	–
Issue of 10,316,586 (period ended 30 June 2021: 75,000,000) shares	103	750
Closing balance of 85,316,586 (30 June 2021: 75,000,000) shares	853	750

7. Net asset value per share

	(Unaudited) 31 December 2021	(Audited) 30 June 2021
Net assets attributable to shareholders (£'000)	89,294	78,227
Shares in issue at the period end	85,316,586	75,000,000
Net asset value per share	104.66p	104.30p

8. Financial instruments measured at fair value

The Company's financial 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 financial 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 significant 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.

Notes to the Accounts

At 31 December 2021, the Company's investment held at fair value, were categorised as follows:

	31 December 2021
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments in equities – quoted	13,512	–	–	13,512
– unquoted	–	–	37,769	37,769
Total	13,512	–	37,769	51,281

At 30 June 2021, the Company's investment held at fair value, were categorised as follows:

	30 June 2021
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Investments in equities – quoted	10,903	–	–	10,903
– unquoted	–	–	30,466	30,466
Total	10,903	–	30,466	41,369

There have been no transfers between Levels 1, 2 or 3 during the period, or comparative period.

9. Uncalled capital commitments

At 30 December 2021, the Company had uncalled capital commitments amounting to £17,917,000 in respect of follow-on investments, which may be drawn down or called by investee entities, subject to agreed notice periods.

10. Events after the interim period that have not been reflected in the financial statements for the interim period

The Directors have evaluated the period since the interim date and have not noted any events which have not been reflected in the financial statements.

Financial

Shareholder information

www.schroders.com/sbsi

Directors

Susannah Nicklin (Chair) Mike Balfour James B. Broderick Alice Chapple

Advisers

Alternative Investment Fund Manager (the "Manager")

Schroder Unit Trusts Limited 1 London Wall Place London EC2Y 5AU

Portfolio Manager

Big Society Capital Limited New Fetter Place 8-10 New Fetter Lane London EC4A 1AZ United Kingdom

Company Secretary

Schroder Investment Management Limited 1 London Wall Place London EC2Y 5AU Telephone: 020 7658 3847

Registered Office

1 London Wall Place London EC2Y 5AU

Depositary and Custodian

HSBC Bank plc 8 Canada Square London E14 5HQ

Corporate Broker

Winterflood Securities Limited The Atrium Building Cannon Bridge House 25 Dowgate Hill London EC4R 2GA United Kingdom

Independent Auditors

BDO LLP 55 Baker Street London W1U 7EU United Kingdom

Registrars

Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA Shareholder helpline: 0800 032 0641* & +44 (0)121 415 0207 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 notifications 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 Company's Registered Office.

Dealing Codes

ISIN:	GB00BF781319
SEDOL:	BF78131
Ticker:	SBSI

Global Intermediary Identification Number (GIIN) PXF89P.99999.SL.826

Legal Entity Identifier (LEI)

549300PG5MF2NY4ZRM86

The Company's privacy notice is available on its webpages.