InvestmentsOct 30 2015

UBS to offer Bristol social impact fund

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Impact investment specialist Resonance has launched a regional social investment fund that will allow investors to back local social enterprises using tax relief.

The £5m Resonance Bristol Social Investment Tax Relief (SITR) Fund aims to help sophisticated investors invest in a tax-efficient way in social enterprises that are helping to tackle poverty.

Developed and run by fund manager Resonance, it will be available to advisers on its wealth management platform, the Strategic Partner Portal for IFAs.

The fund uses the government’s recent tax relief measures to back investment in charities, community interest companies and community benefit societies on terms that work for them.

It has targeted a post-tax internal rate of return of approximately 8 per cent, although overall rates of return may vary depending on the investor’s individual tax circumstances.

The managers hope to invest in approximately 12 social enterprises in the Bristol area, tackling issues such as access to the job market or access to affordable accommodation.

Daniel Brewer, managing director at Resonance said: “Private sector investors can empower social businesses to tackle problems of inequality in our cities. It’s good for investors, good for social enterprises and good for society at large”.

The minimum investment is £10,000 and independent research specialist Worthstone has carried out due diligence on the fund for UBS. It will shortly be making available an independent product review for IFA subscribers on its web-based platform.

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Jamie Broderick, head of national wealth manager UBS Wealth Management, UK said: “This fund truly uses the benefits of SITR at scale, and it drives down the cost of capital for social enterprises ready to grow.”