Access Capital Community Investment Fund
This RBC Global Asset Management fund buys local bonds, such as for the Midtown Exchange, a pivotal neighborhood revitalization project in Minneapolis. The redevelopment's Midtown Global Market is home to minority- and women-owned businesses, and 81% of the housing units in the complex are for low-income tenants.
$10 million; originated March 2017
This fixed income fund purchases bonds that support affordable housing and community development, and service low- and moderate-income individuals and communities. While generating national, diversified fixed income returns for McKnight, the fund uses our investment dollars to purchase Minnesota bonds. We joined the Minnesota Council on Foundations in this first-of-its-kind “Minnesota sleeve” to encourage foundations, endowments and family offices to participate in local impact investing.
Bloomberg Barclays US Aggregate and US Securitized Bond Indexes
Financial Returns: Too early to evaluate
Social & Environmental Impact: The fund's $18 million Minnesota sleeve purchased:
- 70% Mortgage-backed bonds from low to moderate income homes
- 14% Health care facilities and nursing homes
- 14% Affordable multi-family rental housing
- 2% Small Business Administration-backed loans
The McKnight Foundation endowment provides opportunities – besides making grants – to support housing and business development nonprofits. This investment may purchase bonds originated by our grantees. That helps organizations lighten their balance sheets, borrow more money, and take on new projects.
As of November 2017
Photo Credits: (Top) Tony Webster, Flickr Creative Commons
Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.