This website uses cookies

We use cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of our products and services, and assist with our promotional and marketing efforts. View our Privacy Policy

Resonance Impact Investment Funds

Resonance SITR Funds

The Resonance SITR Funds are social investment funds, which enable investors to build a portfolio of investments with the potential for attractive returns and tax relief benefits. The Funds aim to help dismantle poverty in and around their regional area of focus through backing high impact, mission-driven social enterprises. The Resonance South West SITR Fund, the Resonance West Midlands SITR Fund and the North West SITR Fund are sub-funds of the Resonance SITR Fund.

Fund structure

The Resonance South West SITR Fund, Resonance West Midlands SITR Fund and Resonance North West SITR Fund are sub-funds of the Resonance SITR Fund. The Resonance SITR Fund and the Regional sub-funds are not constituted as separate legal entities or structures, but are each the collection of Investor Agreements under which the Fund Manager is appointed as the discretionary investment manager to make investments (which will primarily be loan note based) in SITR Qualifying Enterprises in the relevant Regions. This is essentially the same fund structure as adopted for Enterprise Investment Scheme (EIS) Funds, which are well known to the investor community.

There is a minimum investment amount of £20,000 per investor with a minimum allocation of £10,000 in any one region.

Target fund size

The Resonance SITR Fund has an aggregate target fund size of £5m per Region.

For the current target aggregate fund size and a breakdown by Region please see https://resonance.ltd.uk/for-investors/investment-opportunities.

Target returns

The Resonance SITR Fund has a target post-tax relief IRR of approximately 7-8%. The Gross Equivalent Return for a 40% tax-payer on a target return would be 11-12%.

These target returns are based on 30% income tax relief arising from investments over a two year period, and an assumed average interest rate of approximately 3% during years one to three and approximately 5% during years four to six, with capital repayment between years four to six. Post tax relief IRR is defined as including the 30% income tax relief from SITR but excluding other potential tax effects, such as income tax on interest payments and capital gains tax relief on any losses, which will vary according to the specific tax status of each investor. As an indication, on this basis the post tax relief IRR is forecast at 8.5%, and taking into account these other potential tax effects would result in a forecast IRR of 7.8% for a standard rate tax payer and 7.1% for a higher rate tax payer.

Fund activity - as at January 2020

Resonance West Midlands SITR Fund

 

The Resonance West Midlands SITR Fund achieved its first close in August 2018.

 

The Fund has raised £1.5m from a number of investors to-date, and has deployed £335,000 into three social enterprises, with a number of additional loan offers now awaiting draw down.

 Resonance South West SITR Fund

 

The Resonance South West SITR Fund achieved its first close in February 2016.

 

The current fund size is £2.8m and to date over £2m has been deployed into sixteen social enterprises operating in the South West. This includes Somerset Wood Recycling, SoFab Sports, Community Mentoring and Support, and more recently the National Centre for Integrative Medicine who provide effective and affordable healthcare alternatives, supporting health and wellbeing and minimizing health inequalities in disadvantaged communities.

 Resonance North West SITR Fund

 

The Resonance North West SITR Fund launched in May 2019.

 

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

Invest and save with Ethex to

make money do good

You can browse, compare and invest in a range of products on Ethex platform from bank accounts and ISAs to equity investments and charity bonds that offer a social/environmental as well as a financial return. All you need to do is get started...