Mutual Fund Designed to Help Banks Meet Their Community Reinvestment Act Investment Exa... - 0 views
www.greenmoneyjournal.com/...al-fund-designed-to-help-banks
GroundUp Validation Socially_Responsible_Investing 3BL Financing Local Banks Debt
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The CRA was created in 1977 and mandates that banks make credit and capital available to low- and moderate-income communities.
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Launched in 1999, the Fund’s CRA Shares are designed specifically for banks looking to receive positive consideration on the investment test portion of their CRA exam. Once a bank makes an investment in the CRA Shares, the Advisor confirms its targeted assessment area(s) and begins seeking CRA-qualified investments in those counties. From a financial standpoint, each bank owns a pro-rata share of the Fund whereby the risks and returns are diversified among all the shareholders. The Fund invests primarily in government-related subsectors of the bond market that support community development such as agency-backed securities and taxable municipal bonds.
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“The Fund allows banks the opportunity to invest in a vehicle that targets community development capital to their local markets,” said Barbara VanScoy, senior portfolio manager at Community Capital Management. “Many of these markets may be areas that banks have difficulty in reaching. We also work closely with bank examiners and our bank shareholders to ensure that the Fund’s investments are compliant with the regulations and respond to changing community development needs.”