Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Allia unveils first ‘social impact’ bond

2 Comments
Allia unveils first ‘social impact’ bond

The charitable social investment firm Allia has launched a social impact bond that provides money to help improve the lives of children who are at risk of going into care.

The Future for Children Bond, which is the first public opportunity to invest in a social impact bond, will see the money go to Essex Country Council to help children aged 11-16.

The bond will repay capital at the end of the eight-year term and a variable return will be offered dependent on the success of the bond.

The development of this ‘capital plus’ bond combines investment into affordable housing – Places for People Homes – to provide the funds to repay capital to investors, along with investment into the social impact bond,  in order to deliver a high social impact and provide the additional, viable return.

Around 80% of the funds will go into the fixed rate loan for housing, while 20% will be allocated as equity and loans to Essex Country Council.

Tim Jones, Chief Executive, Allia said: ‘We’re seeing growing interest amongst investors in using their investment funds to achieve a social impact as well as providing a financial return. Our capital plus bond gives the first public opportunity for individual investors to take part in this kind of innovative high-risk high-impact model.

‘With the Future for Children Bond, investors can help give a better future to some of society’s most vulnerable young people, with the potential for sharing in the financial benefits while also keeping their capital at very low risk.’

The bond has a minimum investment of £15,000 and is on offer from 4 February to 15 March.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter