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Impact results

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By the numbers

Investments by theme across our impact strategies:

As of 12/31/22

Investments by theme across our impact strategies - chart
  • Affordable Homeownership
  • Education
  • Energy & Climate Change
  • Health & Wellness
  • Multi-Family Affordable Housing
  • Other
  • Small Business
  • Water & Sanitation

Housing and small business profiles across our impact strategies:

Investing in underserved communities and people

Building wealth through homeownership

As of 12/31/22

100%
Low-to-moderate income (LMI) borrowers
100%
Fair lending standards
54%
Home ownership lending in BIPOC communities

Small business and job creation5

As of 12/31/22

90%
Serving BIPOC neighborhoods
92%
Serving LMI neighborhoods
77%
BIPOC-owned
36%
Women-owned

Source: RBC Global Asset Management, Bloomberg, Federal Reserve (https://www.federalreserve.gov/boarddocs/supmanual/cch/fair_lend_over.pdf ), Small Business Administration, U.S. Department of Housing and Urban Development.
5. Profile of all small business holdings in the RBC Impact investing strategies where data is reported.


Affordable rental housing6

As of 12/31/22

72%
Women head-of-household
84%
Located in BIPOC communities
$21.5k
Average annual resident income
$507
Average monthly rent

Affordable housing investments supporting key stakeholders

As of 12/31/22

100%
of properties are at least 50% reserved for low income families
80%
of residents are BIPOC
49%
of households in which the household head is age 62 or older
84%
of properties are located in BIPOC communities
72%
of units are women-headed households
16%
of households have a family member with a disability

Source: RBC Global Asset Management, Bloomberg, Federal Reserve (https://www.federalreserve.gov/boarddocs/supmanual/cch/fair_lend_over.pdf ), Small Business Administration, U.S. Department of Housing and Urban Development.
6. Figures represent the weighted average of all neighborhood residents across census tracts in which the RBC impact investing strategies’ affordable housing investments are located. Note: Subsidized housing resident data is only available for assisted housing subsidies under the following HUD programs: public housing, tenant-based, and privately owned, project-based.


Holdings across impact portfolios at the end of 2022 included:

As of 12/31/22

470
small businesses providing jobs and valuable services

Breakdown of SBA loan investments by service:

As of 12/31/22

Breakdown of SBA loan investments by service - chart
  • Healthcare
  • Education/childcare
  • Grocery stores
  • Professional services
  • Environmental
  • Real estate
  • Fitness
  • Wholesale
  • Restaurants
  • Construction
  • Services
  • Manufacturing
  • Retail
  • Home services
  • Food service
  • Technology

Within the RBC Access Capital Community Investment strategy - breakdown of the impact made across sectors:

As of 12/31/22

1,121
home purchases made possible in 2022
1,964
affordable rental units financed in 2022
58
Small Business Association loans purchased in 2022

Impact made since inception of the RBC Access Capital Community Investment strategy

As of 12/31/22

Low- to moderate-income home buyers

21,264

Affordable rental units

99,758

Nursing home facility beds

6,071

Rural housing

27

Rural enterprise

101

SBA loans

882

Community economic development projects

139

Community-based not-for-profit organizations

17

Impact of investments in the RBC Impact Bond strategy as compared to the National lending statistics:

National homeownership profile

National homeownership rates by race/ethnicity7

As of 12/31/2022

National homeownership rates by race/ethnicity

7. Urban Institute, “Closing the Gaps, Building Black Wealth through Homeownership”, November 2020. Urban Institute calculations from Survey of Consumer Finances 1983-2016.


These gaps have contributed to significant disparities in family wealth along racial lines8

As of 12/31/2022

These gaps have contributed to significant disparities in family wealth along racial lines

8. Source: Federal Reserve, Survey of Consumer Finances, 1989-2019.


Homeownership profile comparison

National vs. Impact Bond strategy9

As of 12/31/2022

National vs. Impact Bond strategy

9. LMI – Low-to-Moderate Income; AAPI – Asian Americans and Pacific Islanders; GSE – Government-Sponsored Enterprise
10. Consumer Financial Protection Bureau, “Data Point: 2019 Mortgage Market Activity Trends Report”, June 2020.
11. RBC Global Asset Management and U.S. Census Bureau data. Note: Race data for the strategy uses census tract demographics as a proxy for household demographics (i.e., if a home is located in a tract where more than 50% of the population is BIPOC, it is categorized as a BIPOC household for reporting purposes).


Entrepreneurship profile comparison

As of 12/31/2022

Entrepreneurship profile comparison

12. Source: Frequently Asked Questions About Small Business, 2021, Small Business Administration.
13. RBC Global Asset Management, U.S. Census Bureau.


Strategy investments in small business14

As of 12/31/2022

92%
serve BIPOC neighborhoods
83%
serve LMI neighborhoods
63%
are focused on healthcare, childcare, and manufacturing

14. Source: Low-to-moderate income data: Federal Financial Institutions Examination Council (FFIEC), 2019 Community Reinvestment Act Data Fact Sheet; RBC GAM & U.S. Census Bureau. Profile of all small business holdings in the strategy where data is reported.

For more data across all our themes

affordable home ownership, education, climate change solutions, health and wellness, multi-family affordable housing, supporting small business, and clean water and sanitation.

Impact investment examples

At RBC GAM, we are committed to providing investors with transparency around the specific investments we make on their behalf. Below are a few examples of 2022 investments in our strategies across a variety of themes and geographies.

Filter by impact theme:

Adult day care – Kansas City, MO

Adult day care – Kansas City, MO

This small business is focused on providing adult daycare services in Kansas City, MO. Adult day care centers and programs provide a safe and secure setting for adults who may need supervision during the day due to physical or cognitive limitations. In addition to supporting a new business and job creation in this community, this center provides many other benefits, including providing social activity and companionship for participants, as well as giving primary caregivers a much-needed break from constant caregiving responsibilities. Services such as these help strengthen not just the families who utilize the services but are beneficial to communities as a whole.

Highlights

  • Provides compassionate and individualized care of adults with disabilities
  • Transportation is provided to and from the center as well as to appointments, pharmacy, and shopping
  • Services include nursing care, music therapy,fitness, and support groups
  • Goal is to see participants thrive while avoiding unnecessary ER trips and delaying or avoiding being institutionalized
  • 100% funded by Missouri Medicaid
  • Black-owned and located in 80% BIPOC low-income tract

Preservation of Affordable Housing (POAH) – Boston, MA

Preservation of Affordable Housing (POAH) – Boston, MA

Preservation of Affordable Housing (POAH) is a non-profit developer, owner, and operator of nearly 13,000 affordable homes across the country. Their stated mission is to preserve, create, and sustain affordable, healthy homes to meet skyrocketing demand, with an emphasis on preservation. Within the United States, the number of units of affordable housing is not nearly enough to meet demand. While there is much discussion around the building of new affordable housing units, it is also important to preserve and renovate existing public structures to better meet the needs of the community. POAH has a special talent for this work, and has recently committed to renovating an old church, a former convent, and a defunct bank, enabling them to maintain revered historic neighborhood buildings and increase the affordable housing supply simultaneously.

Highlights

  • National non-profit organization founded in 2001 that focuses on affordable housing preservation and development
  • Developer, owner, and operator of properties in 11 states and DC
  • Mission is top reserve, create, and sustain affordable, healthy homes that support economic security, racial equity, and access to opportunity
  • Geographical portfolio is one of the most diverse among other rated US social housing providers (SHP)

National Community Renaissance – Rancho Cucamonga, CA

National Community Renaissance – Rancho Cucamonga, CA

National Community Renaissance is a non-profit affordable housing developer that is focused on building and creating communities as opposed to individual units. Their goal is to create a neighborhood that supports their residents with not only safe and affordable housing, but also with much-needed services including schooling, elder care, and financial literacy training. Their foundation, Hope through Housing, implements the programs that residents need to thrive and builds communities one family at time. The effect of these communities is increased neighborhood stability and a chance for residents to break the generational poverty cycle and fulfill their potential.

Highlights

  • Non-profit corporation that provides high quality affordable housing and social services to enhance communities and break the cycle of generational poverty
  • Works closely with the Hope through Housing Foundation, which provides services to residents and communities for education, healthcare, financial training, and ageing issues
  • Proceeds will be used to refinance debt on specific properties, to buy out limited partners in some properties, and to develop new projects

Currently have 77 developments

7,082
units housing 30,000 residents
70%
are for families and 30% are for seniors
73%
of residents are BIPOC

Renewable energy in Mexico

Renewable energy in Mexico

The Tres Mesas Project is a wind energy park composed of 45 wind turbines that generate 148.5 MW. Its first stage was officially inaugurated in May 2017, and it is funded by the US DFC. This energy park will increase installed capacity of renewable energy resources, reducing demand for traditional fossil fuel-based energy production. Renewable energy projects, particularly wind-based, are important to the country of Mexico as wind energy serves as the country’s main tool for reaching its Nationally Determined Contributions (NDCs) under the Paris Agreement. Furthermore, these projects not only mitigate the effect of climate change but also contribute to the local economy by employing residents to work at the wind park.

Highlights

  • Financed through the US International Development Finance Corporation (DFC) Tres Mesas will develop, construct, own, and operate two (62.7 megawatts and 858 megawatts) wind farms in Tamaulipas, Mexico
  • The project includes the construction and operation of the farms, construction of a transmission line, internal access roads, substation, offices, maintenance buildings, warehouses and parking lots
  • The farms will have 45 turbines that generate 3.3 megawatts each for a total of 150 megawatts
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