Welcome to the 2024 CT UK Social Bond Fund Annual Report. At the end of financial year ending 30 June 2024, the Fund was managing £367m in assets across 153 bonds from 107 issuers, continuing its mission to drive positive social outcomes in the UK.
HIGHLIGHTS OF 2024
- Issuers engaged target populations to track the real-world outcomes of their investment for end customers
- 89% of the fund by value is allocated to high and medium-rated bonds
- The fund was highly commended in Investment Week’s 2024 Sustainable Investment Awards (Best Sustainable Bond Fund category)
- The fund’s 2023 annual report was highly commended at the Pensions for Purpose Annual Content Awards for best strategy.
Despite signs that the wider economy may have passed the most difficult phase, the cost-of-living crisis remains a significant challenge for the communities the Fund seeks to benefit. Pressures on healthcare, education, and rising inequality persist, while inflation, though reduced, continues to impact vulnerable populations. In this context, the need for social investment remains urgent.
Amidst these pressing challenges, the Fund has continued to improve its ratings through increasing the investment allocation to bonds rated Medium and High by social performance, which now comprise 89% of the portfolio. The Fund team continued to engage with issuers, particularly drawing focus on the social aspects within green bonds and advocating for approaches that elevate community voices, ensuring a deeper understanding of and engagement with those most affected by social and environmental issues.
The Fund demonstrates the need to tackle pressing social challenges in this way. This also highlights the critical role of local authorities and government commissioners, who are key players in shaping and funding initiatives that address urgent societal challenges, and organisations focused on creating social outcomes, to tap into the public market and use vehicles like this Fund to drive tangible, long-term change. Public-private partnerships and collaborations with relevant service providers are vital to ensuring that resources are effectively deployed to meet community needs, amplifying the impact of their efforts, and fostering more inclusive and sustainable solutions.
