We believe the ultimate measure of our success as responsible investors is the creation of economic activity that supports healthy, inclusive communities. Community development investing plays a significant role in that process, and a growing number of investors are allocating a portion of their financial resources in this manner. These investors are addressing poverty and injustice by providing capital to build affordable housing, finance renewable energy installations, create jobs, and upgrade human services. High impact investments in lower income neighborhoods offer individuals and institutions the opportunity to reap significant social dividends from their portfolios.
Walden offers clients an opportunity to invest in community development institutions, banks and credit unions that support economic development and affordable housing. We seek “DTC-eligible” community development investing options for our clients, which can be held in your Walden portfolio like other securities. Current options include:
Calvert Foundation Community Investment Note (CI Note)
The CI Note program currently channels over $250 million to more than 100 nonprofits and social enterprises that are providing economic opportunities where they are needed most. Investments in the CI Note support affordable housing, small businesses, and community facilities throughout the U.S.; and microcredit loans, fair trade cooperatives, global health, women’s empowerment, and clean energy in more than 80 countries around the world. The Calvert Foundation is responsible for conducting due diligence on the investment. The prospectus is available here.
Self-Help Federal Credit Union Term Certificates (CDs)
Self-Help is a family of organizations that includes Self-Help Credit Union, Self-Help Federal Credit Union, the Self-Help Ventures Fund, and the Center for Responsible Lending. Since its founding in 1980, Self-Help has provided approximately $7 billion in financing to people who have been traditionally underserved by conventional markets, namely lower income families and people of color. 100% of the investments held in Self-Help Federal Credit Union’s Term Certificates are lent directly for consumer, home, “green” lending, immigrant inclusion, or small business purposes in California, Chicago, and Florida. The CDs are insured by the National Credit Union Administration (NCUA) up to $250,000 and offer guaranteed returns for the length of your term. More information on Self-Help’s CDs is available here.
Please contact your Walden portfolio manager to learn more about how to direct a portion of your Walden portfolio to community development investments.