RBC Global Asset Management Partners with Grantmakers in California to Launch Impact Investing Collaboration

Rhea-AI Summary

RBC Global Asset Management, alongside various Californian grantmakers, has initiated the Philanthropy California Investment Collaborative, targeting $100 million to support underserved communities. This initiative aims to foster homeownership, job creation, and access to affordable housing and healthcare. The collaborative enables organizations to make market-rate investments while pursuing social impact, focusing on areas critical to their missions. Initial contributions from notable foundations demonstrate a commitment to improving California's economic health and addressing community needs.

Positive

• Launch of Philanthropy California Investment Collaborative designed to support underserved communities.
• Initial investments totaling approximately $100 million from various California foundations.
• Opportunity for organizations to earn competitive financial returns while supporting social impact.
• Focus on critical areas such as affordable housing, job creation, and healthcare access.

Negative

• None.

Investors Contribute $100 Million to Direct Impact Dollars to California Communities

MINNEAPOLIS, MN, Sept. 30, 2020 /PRNewswire/ - RBC Global Asset Management ("RBC GAM"), Northern California Grantmakers, Southern California Grantmakers, and San Diego Grantmakers today announced the launch of the Philanthropy California Investment Collaborative, an impact investing initiative that will support homeownership, job creation, small business growth, and increased access to affordable rental housing, healthcare and education.

The Philanthropy California Investment Collaborative provides a coordinated approach for investors to direct market-rate investments in California with a specific focus on underserved communities and families. As part of the collaborative, foundations, grantmakers and organizations can invest in RBC GAM's impact investing strategies, within their fixed income allocation, that target the geographic areas of interest that are important to their organizations and missions, while also earning a competitive financial return.

San Francisco Foundation, Fresno County Employees' Retirement Association, Weingart Foundation and other California organizations have made initial investments totaling approximately $100 million into RBC GAM's impact investing strategies to launch this initiative.

"We are pleased to collaborate with so many mission-driven organizations on a program that supports impact-related investments that will focus on supporting underserved communities and families across the state of California," said Catherine Banat, Director of U.S. Responsible Investing at RBC Global Asset Management. "We think impact investing can help California thrive and prosper."

Members of Philanthropy California – an alliance of Northern California, Southern California, and San Diego Grantmakers – grant millions of dollars annually to build economic health in California, and they created this impact initiative because they know that grant dollars alone will not drive the change needed. Their goal is to allow organizations to collaborate across the state of California to generate market-rate returns while supporting affordable housing and community facilities like hospitals and healthcare clinics, as well as small businesses.

"We are excited to work with our California grantmaker peers to raise awareness for impact investing," said Debbie McKeon, President and CEO of San Diego Grantmakers. "Market-rate investments that address important community issues can work hand-in-hand with grant dollars to accelerate the contribution foundations can make to help California."

With this investment collaborative, organizations in California are looking to support the communities where they live and serve.

"We believe in the power of impact investing as a catalyst for racial equity and economic inclusion, helping to build affordable housing, grow small businesses, create fair wage jobs, and strengthen the organizations that serve our communities," said Mark Doherty, Director of Investments at San Francisco Foundation. "We're thrilled to partner with other investors through the Philanthropy California Investment Collaborative to advance progress for our region's most pressing issues."

Nathan Magsig, Chairman of Fresno County Employees' Retirement Association said, "The opportunity to partner across sectors to effect change for our community is compelling and needed now more than ever."

"An equitable recovery must move resources and power to our most vulnerable residents, and no one organization – or sector – can do it alone," said Rosa Benitez, Director of Program Investments at Weingart Foundation. "The Philanthropy California Investment Collaborative leverages collaboration among like-minded investors to help achieve impact at scale."

To learn more about Philanthropy California Investment Collaborative, visit rbcgam.com.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

About RBC Global Asset Management (RBC GAM)
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) and includes BlueBay Asset Management and Phillips, Hager & PH&N Institutional. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage approximately $400 billion USD in assets and have approximately 1,400 employees located across Canada, the United States, Europe and Asia.

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SOURCE RBC Global Asset Management (U.S.)

FAQ

What is the Philanthropy California Investment Collaborative launched by RBC Global Asset Management?

It is an initiative focused on directing investments to underserved communities in California, promoting homeownership, job creation, and access to affordable resources.

How much money has been invested in the Philanthropy California Investment Collaborative?

Approximately $100 million has been contributed as part of the initial investment.

What are the primary objectives of RBC's impact investing strategies in California?

The main objectives include supporting affordable housing, creating jobs, and enhancing access to healthcare and education.

Which organizations are participating in the Philanthropy California Investment Collaborative?

Participating organizations include Northern California Grantmakers, Southern California Grantmakers, and San Diego Grantmakers, among others.

How does the Philanthropy California Investment Collaborative work?

It allows foundations and organizations to make market-rate investments aligned with their missions while generating social impact.

What is the significance of impact investing for communities in California?

Impact investing aims to drive economic health and social equity, addressing pressing issues in underserved communities.