An RBC Global Asset Management partnership with Groundworks New Mexico & New Mexico Impact Investment Collaborative
Providing a coordinated approach for investors to make market-rate investments to impact New Mexico with a focus on underserved communities and families.
The Purpose of the Collaborative
LIFT NM provides mission-driven investors a coordinated approach to support high-impact projects through scaled investment in New Mexico.
These projects support home ownership, job creation, small business growth, increased access to rental housing, healthcare, and education in New Mexico.
The partnership allows New Mexico investors to come together and focus their investments in specific communities that are important to them.
Investing for Impact at RBC Global Asset Management
Through the partnership with RBC Global Asset Management (RBC GAM), participants in LIFT NM can invest in high quality, liquid fixed income strategies intended to create positive social and environmental impacts while also seeking a competitive financial return. RBC GAM believes that we can help build stronger communities and build portfolios of high quality securities that meet investors' needs while increasing the flow of capital to designated communities.*
*Participants' ability to designate geographies and/or themes is dependent on the amount of their investment and the vehicle through which they invest.
Geographic summary
As of 9.30.23 Source: RBC GAM, Tableau
Disciplined Investing with a Community Development Purpose through the Access Capital Community Investing Strategy
- High quality, liquid fixed income investment strategy that primarily holds investments guaranteed by the US government, its agencies or municipalities
- 25-year track record of delivering social impact and institutional caliber investments
- Advances social justice in market-rate investments through the creation of customized securities that support underserved people in the US
- Builds stronger communities by financing affordable housing, job creation, healthcare, education and infrastructure projects that foster sustainable economic development
Impact summary
Affordable homeownership
Neighborhood demographics
100% |
of borrowers earn less than 80% of Area Median Income |
70% |
of loans are in BIPOC neighborhoods |
55 |
affordable mortgages for LMI families |
$241,000 |
Average loan |
LIFT NM
- Officially launched in May 2021
- Spans 10 counties in New Mexico
- $36M committed to New Mexico
- Investors include two foundations, one corporation, and a medical center
Source: RBC GAM, as of 9.30.23
The intersection of financial returns and social benefits
BIPOC is an acronym that stands for Black, Indigenous, and People of Color.
1 Targeting options only available in certain vehicles and are subject to investment minimums.
Real world impact
Access Capital has contributed to impact investments in 50 states and the District of Columbia. Highlights include:
■ 21,738 low-to moderate-income home buyers ■ 104,897 affordable rental units ■ 6,071 nursing home facility beds ■ 27 rural properties ■ 101 rural enterprises ■ 1,010 small business loans ■ 145 community economic development projects ■ 17 community‑based not‑for‑profit organizations
Impact investments listed above include investments in all vehicle options for the strategy.
Addressing the needs of New Mexico
Homeownership
Owning a home has long been a pillar of the American dream. But would-be homeowners who are low-and-moderate income are often overlooked by the banking industries, even those with good credit. RBC GAM's impact investing strategies help low- and moderate-income home buyers access mortgages at prime rates and open the door to their own home.
Affordable mortgages for low-to-moderate income families provide stability, and are a major vehicle for building wealth and economic opportunity.
Rental housing
Across America, rental housing stock is severely limited and often overpriced. 80% of low-income households pay more than 1/3 of their income for rent, leaving less for food, healthcare and education. RBC GAM's impact investing strategies finance affordable rental units, buying first mortgages of multifamily rental units, helping to support renters with income limits, who are further supported by federal, state and housing authority assistance programs.
Small business
and job growth
Would-be small business owners often lack the capital to open businesses that serve the community, like laundry facilities, supermarkets and clinics. RBC GAM's impact investing strategies buy the guaranteed portions of SBA loans to deliver more services to the residents of low- and moderate-income communities and provide more job opportunities within the local economy.
Education
Access to quality education is a key driver of upward socioeconomic mobility and helps to reduce inequalities often found in higher education and the job force. RBC GAM’s impact investing strategies support equal access to educational opportunities, including preschools and primary schools, secondary and post-secondary education, as well as access to job skills and training programs. These opportunities are vital to students of all ages as they provide preparation for employment and career development.
Healthcare
Lack of access to comprehensive, quality healthcare services impacts the ability of men, women and children to lead healthy and productive lives. RBC GAM's impact investing strategies invest in a range of healthcare facilities in underserved communities --including nursing homes, community clinics, skilled nursing care and family dentistry --resulting in healthier, more stable and more productive communities.
Environmental
sustainability
Climate change is a global challenge that will have impacts on economies, markets, and societies worldwide. RBC GAM's impact investing strategies support projects that promote the health of the environment, including renewable energy, clean air and water, land preservation, efficient resource use, and environmental remediation.
SOUTH SHIPROCK APARTMENTS - Shiprock, NM
DANCE & MUSIC STUDIO - Albuquerque, NM
VILLAS DE SAN IGNACIO - Santa Fe, NM
Solutions for making and measuring impact
| Geographic designation |
Thematic designation |
Individual DTR report1 |
LIFT NM report2 |
|
|---|---|---|---|---|
| Access Capital community investing | ||||
| Separate account (≥ $50 million) | Yes | Yes | Yes | Yes |
| Mutual fund3 | At ≥ $100,000 | No | At ≥ $1 million | Yes |
| Impact Bond | ||||
| Separate account (≥ $50 million) | Yes | Yes | Yes | Yes |
| Mutual fund3 | No1 | No | No | Yes |
| Customized separate account (≥ $50 million) | Yes | Yes | Yes | Yes |
1 A report detailing the underlying loans in each security in which the participant invests
2 A report detailing the underlying loans in each security RBC GAM invests in on behalf of LIFT NM
3 For Mutual Fund information, please visit intermediaries.rbcgam.com/us/