Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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
When Brewin's Gutteridge met BlackRock's easy Rieder

When Brewin's Gutteridge met BlackRock's easy Rieder

Following Federal Reserve chair Janet Yellen’s testimony, Ben Gutteridge, head of fund research at Brewin Dolphin, grills Rick Rieder, CIO of fundamental fixed income at BlackRock.

Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

Your Business: Cover Star Club

Profile: meet the man building Towry into an £11bn giant

Profile: meet the man building Towry into an £11bn giant

As a former engineer who worked on Hong Kong International Airport, Rob Devey is not afraid of taking on major projects

Wealth Manager on Twitter