Impact results
By the numbers
Investments by theme across our impact strategies:
As of 12/31/22
- 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) borrowers100%
Fair lending standards54%
Home ownership lending in BIPOC communitiesSmall business and job creation5
As of 12/31/22
90%
Serving BIPOC neighborhoods92%
Serving LMI neighborhoods77%
BIPOC-owned36%
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-household84%
Located in BIPOC communities$21.5k
Average annual resident income$507
Average monthly rentAffordable housing investments supporting key stakeholders
As of 12/31/22
100%
of properties are at least 50% reserved for low income families80%
of residents are BIPOC49%
of households in which the household head is age 62 or older84%
of properties are located in BIPOC communities72%
of units are women-headed households16%
of households have a family member with a disabilitySource: 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 servicesBreakdown of SBA loan investments by service:
As of 12/31/22
- 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 20221,964
affordable rental units financed in 202258
Small Business Association loans purchased in 2022Impact 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
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
8. Source: Federal Reserve, Survey of Consumer Finances, 1989-2019.
Homeownership profile comparison
National vs. Impact Bond strategy9
As of 12/31/2022
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
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 neighborhoods83%
serve LMI neighborhoods63%
are focused on healthcare, childcare, and manufacturing14. 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.
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) 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 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 residents70%
are for families and 30% are for seniors73%
of residents are BIPOCRenewable 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