Schroder BSC Social Impact Trust (LSE:SBSI) reported NAV per share of 104.27p for the year to 30 June 2026, declared a 2.6p dividend and proposed that shareholders vote for continuation to allow time for a proposed private fund to acquire its portfolio.

What was announced

Schroder BSC Social Impact Trust plc published its annual results for the year ended 30 June 2026 on 29 October, together with an update on the strategic review launched in July 2025. NAV per share rose to 104.27p from 102.94p, giving a NAV total return of 4.96%, compared with 1.63% in the previous year. Since launch in December 2020, NAV total return has been 17.54%, or 2.97% a year. The trust outperformed its CPI plus 2% target by 0.36 percentage points.

The share price total return was negative 2.9%, and the shares stood at a 31.4% discount to NAV at the year-end. Net assets were £81.5 million (£83.5 million), reflecting the buyback of about 2.93 million shares, which reduced the shares in issue to 78.17 million and added about 1.25p to NAV per share.

In a separate announcement the board declared a dividend of 2.60p per share for the year, made up wholly of an interest distribution. The shares go ex-dividend on 12 November 2026, with a record date of 13 November and payment on 18 December. The payment, equal to a 2.5% yield on NAV, sits within the target range of 2% to 3% of NAV but is below the 3.76p paid for the prior year.

The numbers

Gross revenue fell to £3.01 million from £4.36 million and net revenue to £2.13 million from £3.40 million, giving a revenue return of 2.69p per share (4.15p). Total net return was £3.02 million, or 3.80p per share, helped by investment gains of £1.18 million after losses of £2.41 million a year earlier.

Bridges Inclusive Growth Fund was the largest positive contributor at 1.77p per share, followed by the Charity Bond Portfolio at 1.02p. The Man Group Community Housing Fund was the largest detractor at minus 0.40p, partly due to higher construction budgets at two sites affected by developer insolvencies. Bonds and loans from Triodos Bank UK, B4RN and Uxbridge United Welfare Trust were repaid in full. Since inception the trust has committed £96 million to 197 frontline organisations, reaching about 434,000 people.

Strategic review

The board said shareholder views are split: holders of a majority of shares want continued investment, while others want a return of capital or near-term liquidity. Portfolio manager Better Society Capital (BSC) is developing a new private fund limited partnership to propose acquiring the high impact investment portfolio. Interested professional investors could exchange shares for interests in the new fund, while non-participating shareholders would receive a near-term cash exit. BSC would commit up to £15 million, and any acquisition is expected to be at a discount to the prevailing valuation. Full details are expected in the first quarter of 2027, and success depends on sufficient investor interest and agreed terms.

If the proposal is not brought forward by the end of the first quarter of 2027, or terms cannot be agreed, the board may propose alternatives including a managed wind-down, with any initial return of capital not expected before late 2027. BSC has been told to make no new commitments except to meet existing ones or where a follow-on investment is in shareholders' interests.

What to watch next

Because the average discount over the two years to 31 December 2025 was 23.8%, above the 10% policy threshold, a continuation resolution will be put to the AGM on 17 December 2026. The board supports a vote in favour; if it fails, the directors would propose a reconstruction or reorganisation as soon as reasonably practicable. Chair Susannah Nicklin said the board looks "forward to updating shareholders as work progresses". A results webinar is scheduled for 9 November.