ImpactAssets Liquid Impact Portfolio provides donor advised funds with liquidity and yield while making a social impact.
ImpactAssets announced recently the launch of the ImpactAssets Liquid Impact Portfolio, a new 100% impact money market alternative that enables investors to “park cash” while benefitting low-income communities.
For more information here: http://impactassets.org/our_products/giving_fund/investment-options
As an innovative solution, the ImpactAssets Liquid Impact Portfolio seeks to provide the ease and utility of a money market fund with the goal of safety of principal, liquidity and yield, and is available only within the ImpactAssets Giving Fund, a donor advised fund (DAF)*.
“With the introduction of the ImpactAssets Liquid Impact Portfolio, we now offer our clients liquidity and yield with significant impact,” said Tim Freundlich, President of ImpactAssets. “We’ve partnered with community development banks and other high impact financial institutions to generate ‘liquidity for impact’ while helping to finance affordable housing, small business and community facilities.“
“With this product, we are tapping into a groundswell of investor interest in local community investing, while providing liquidity to our donors as they wait to make grants or allocate to longer term impact investment options.”
Reinvention of What It Means for Investors to “Park Cash”
The Liquid Impact Portfolio is constructed of short-term deposits and investments through Community Development Financial Institutions, and features laddered maturities across a relatively short duration with a targeted weighted average maturity of less than 180 days. No minimum balance is required.
The financial institutions receiving capital from the Portfolio are dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. By financing community businesses – including, small business, microenterprise, nonprofit organizations commercial real estate, and affordable housing – the Portfolio sparks job growth and retention in hard-to-serve markets across the nation.
“Historically, money market funds and money market alternatives have been overlooked as a viable impact investment opportunity. We’ve changed that thinking with the Liquid Impact Portfolio,” said Gabe DiClerico, Director, Operations. “Now donors can tap additional sources of low-volatility liquid return while making a positive impact to targeted localities and communities.
A Full Suite of Impact Portfolios
Building upon ImpactAssets’ pioneering legacy of developing groundbreaking impact investment solutions, this new portfolio continues to fill out the organization’s wide spectrum of impact investment offerings, which also include a new suite of four 100% Impact Portfolios that uniquely blend public and private equity and debt impact funds and are targeted to investor time horizons.
The new 100% Impact Portfolio lineup includes Conservative, Moderate and Aggressive portfolios and provides donors easy access to world class impact fund managers spanning traditional asset classes while addressing the world’s most significant social and environmental issues. Many of these investments provide gap-filling financing to social enterprises that are too small or too “unconventional” to raise capital from traditional sources.
ImpactAssets is a nonprofit financial services firm that increases the flow of capital into investments delivering financial, social and environmental returns. ImpactAssets’ donor advised fund (“The Giving Fund”), impact investment notes, and field-building initiatives enable philanthropists, other asset owners and their wealth advisors to advance social or environmental change through investment
About The Giving Fund:
The Giving Fund is an innovative donor advised fund that empowers donors to increase the impact of their giving by combining it with strategic sustainable and responsible investing to build a sophisticated philanthropic endowment. Donors recommend how The Giving Fund’s assets are invested across a range of leading impact investment options including community investment, turnkey portfolios, private debt and equity funds, seed venture and custom investments. The Giving Fund currently has $300M in total Assets.
* A donor advised fund is a philanthropic vehicle that allows organizations, families or individuals to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time.