The past year has brought about tremendous change within the United States, both socially and economically. As a result, more and more investors are looking to direct their assets and investments towards causes that help drive change within their communities. RBC Global Asset Management’s impact investing strategies seek to meet these needs, all within the context of a high-quality fixed income solution.
The 2020 Impact Investing Annual Report provides detailed metrics on the impacts delivered by the investments made in 2020. It also offers an in-depth view of our impact-focused strategies and explores the interconnected nature of our relationships with community organizations, industry partners and clients as we seek to continually enhance our impact ecosystem.
Jump to specific sections below or download the full report.
Our Impact Ecosystem
Events that occurred over the past year highlighted the pivotal roles played by responsible lenders and small businesses within our communities. The COVID-19 pandemic revealed that the infrastructure currently in place to provide financial aid and access to those in underserved communities has not met the needs of all. It is for this reason that we partner with CDFIs whenever we can and place a high value on our relationships with CDFIs.
The Role of Community Development Financial Institutions (CDFIs)
Our partnerships with CDFIs allow us to acquire high impact loans for our clients’ investment portfolios. We take a closer look at Lendistry, a Los Angeles-based fintech CDFI that provides a unique way for financial institutions, municipalities and states to deploy capital to underserved markets.
As a minority-led CDFI, the company is dedicated to providing economic opportunities and progressive growth for underserved urban and rural small business borrowers and their communities.
Access Capital Results
The Access Capital Community Investment strategy has a 20+ year history of supporting low-and-moderate income (LMI) individuals and communities while allowing investors the opportunity to target the specific communities that are important to them. The strategy is a place-based investment approach that allows investors to direct their investments to certain communities, cities or states so they can witness community development in their own backyards.
Targeted Local Investing – A Case Study
In 2020, a coalition of Northern California Grantmakers, Southern California Grantmakers, and Catalyst of San Diego and Imperial Counties partnered with RBC GAM to launch a regional initiative called the Philanthropy California Investment Collaborative. This Collaborative provides a coordinated approach for investors to direct market rate investments in California with a specific focus on underserved communities and families, catalyzing like-minded investors seeking to support positive social outcomes in California across a breadth of issues, including affordable housing, community development, and small business growth.
Spotlight on Sustainable Development Goals (SDG)
Spotlight on Sustainable Development Goal 3: Ensure healthy lives and promote well-being for all at all ages
Spotlight on Sustainable Development Goal 10: Reduce inequalities
Spotlight on Climate Change Sustainable Development Goal 13: Take urgent action to combat climate change and its impacts
Impact Bond Results
Our Impact Bond strategy, which has over a 10 year track record, focuses on thematic impact investing. These themes include affordable housing, small business/ economic growth, health and well-being, environmental sustainability, education, community development, diversity, reduced inequalities, and neighborhood revitalization. Loans for this strategy are hand-picked for securitization such that they meet our clients’ specific impact goals. 1
1 Targeting options only available in certain vehicles and subject to investment minimums.