ImpactAssets Introduces “100 Percent for Impact” Alternative to Traditional Money Market Fund
Wednesday, September 28, 2016
ImpactAssets announced today 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.
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.