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Threadneedle launches social bond fund with Big Issue Invest

Threadneedle Investments has today announced it will launch the Threadneedle UK Social Bond Fund in partnership with Big Issue Invest, the social investment arm of The Big Issue.

The Fund aims to achieve both an investment return and a positive social outcome by investing in fixed income securities of organisations which support socially beneficial activities and economic development.

Available to retail and institutional investors from January 2014, it will invest in companies, associations, charities and trusts in social intensity areas including affordable housing and property, community services, employment and training, financial inclusion, health and social care, transport and communications, and utilities and the environment.

The Fund will launch with £10 million of seed investment from Big Society Capital, the world’s first social investment bank and £5 million from Threadneedle. It is the first fund of its kind with daily liquidity, offering retail investors access to the increasingly popular social investment space.

Campbell Fleming, chief executive officer of Threadneedle Investments said: “We are proud to be launching this landmark fund at a time of significant need and demand for social investments, not just from institutional investors but also from individuals.

" We have worked with Big Issue Invest to develop a concept that allows people to direct a portion of their savings into investments with a social benefit, through a transparent and liquid vehicle which also aims to generate a return in line with a UK corporate bond index.

"The UK Government has been vocal on its plans to bring investment into public services through new financial initiatives. The UK Social Bond Fund complements these efforts and is the first fund of its kind to bring social investment to mainstream UK investors.”

Nigel Kershaw, chief executive of Big Issue Invest, said: “The Big Issue is committed to preventing poverty which can lead to people falling into homelessness.

"The UK Social Bond Fund extends and supports this mission by investing in organisations that create social benefits and support more sustainable economic development and job creation in the UK.

"We are delighted to be launching this fund with Threadneedle, a leading investment manager with a strong track record in responsible investment and stewardship.

"We have developed a unique social assessment methodology, with input from Threadneedle’s Governance and Responsible Investment team, enabling the fund manager to direct money into organisations that improve the lives of individuals, communities and society as a whole.”


Read the rest of this article at Charity Times – http://www.charitytimes.com/ct/Threadneedle_launches_Social_Bond_Fund_with-Big_Issue_Invest.php