UK social bonds should play a role in Mansion House Accord signatories’ commitment to “backing British growth”, the Chair of The Big Issue Group has said.
In an independent review of the Colombia Threadneedle UK Social Bond Fund, Nigel Kershaw OBE, Chair of The Big Issue Group, said there had been both demonstrable positive financial returns and social impact.
Kershaw said:“The CT UK Social Bond Fund directs capital into the areas that matter most, including affordable housing, clean energy and financial inclusion, helping to support communities across the UK while performing for investors. The Big Issue Group independently evaluates the social impact of every bond, and with 90 per cent of the portfolio rated High or Medium, the results are clear: purposeful investment can help build a fairer, more inclusive economy.”
The fund, which has GBP394 million in assets, returned 6.5 per cent in 2025. For February 2026, Colombia Threadneedle reported that gross of fees that “the fund modestly outperformed its benchmark index over the month”.
The fund aims to address a number of social challenges from housing shortages to insufficient access to quality education and healthcare, and unsustainable provision of transport and infrastructure.
For 2025, 47 per cent of the fund’s value was aligned with a high social performance, 43 per cent with medium and 10 per cent with low.
The majority of the fund’s fees go towards supporting The Big Issue Group in “unlocking social and economic opportunities for people in poverty”.
Tammie Tang, Portfolio Manager at Columbia Threadneedle Investments, argued that as institutional investors increasingly integrate impact into their strategies, alongside growing appetite for UK-focused investment, the fund remains an “attractive and compelling option.”
“At a time when the Mansion House Accord calls for a transformational step change in the allocation of pension capital to UK growth assets, we believe that investments focused on social outcomes are not only compatible with fiduciary duty but are essential to delivering long term value for savers and society. By investing where capital is most needed, whether in affordable homes, resilient utilities or accessible transport, we strengthen the foundations of inclusive growth across the country,” Tang said.
She continued: “Master Trusts have the scale to transform the reach and impact of retirement savings. Their backing can drive positive change in society while delivering outcomes for members and raising market standards through active engagement and clear outcomes reporting. We believe social‑outcomes investing sits at the heart of the next phase of DC pension evolution.”
